Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households

This study investigates the effects of rising food price on poverty and rate of vulnerability of the Iranian rural households. Applying the rural households’ data in 2012, first the compensated price elasticities are calculated by a Quadratic Almost Ideal demand system and then the effect of simulta...

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Main Authors: ghasem layani, Mohammad Bakhshoodeh
Format: Article
Language:fas
Published: Tarbiat Modares University 2016-11-01
Series:پژوهشهای اقتصادی
Subjects:
Online Access:http://ecor.modares.ac.ir/article-18-3414-en.pdf
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author ghasem layani
Mohammad Bakhshoodeh
author_facet ghasem layani
Mohammad Bakhshoodeh
author_sort ghasem layani
collection DOAJ
description This study investigates the effects of rising food price on poverty and rate of vulnerability of the Iranian rural households. Applying the rural households’ data in 2012, first the compensated price elasticities are calculated by a Quadratic Almost Ideal demand system and then the effect of simultaneous increases in world food prices on welfare of rural households is studied in order to compute the vulnerability index and poverty variations. Results show that after rising food prices, the households’ welfare significantly gets worse, so that the corresponding compensated variation equals to 530.78 thousand Iranian Rials, which accounts for 6.28% of mean monthly income of the rural households. This limit defines the vulnerability index. Based on the computed poverty line, i.e. 2772.71 thousand Iranian Rials, over 49% of the households spend less for food. In other words, they suffer from food poverty. The results also show that nearly 14 percent (about 2764 households) has been added to the share of poor households because of rising food prices. The findings of this study can be used to design economic policies in order to protection of vulnerable groups, food security and social welfare.
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spelling doaj.art-17507dc0404b487596e825bd5f925e3a2023-06-15T20:21:57ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322016-11-01163127Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Householdsghasem layani0Mohammad Bakhshoodeh1 Ph.D. Student of Agricultural Economics, University of Shiraz Professor of Agricultural Economics, University of Shiraz This study investigates the effects of rising food price on poverty and rate of vulnerability of the Iranian rural households. Applying the rural households’ data in 2012, first the compensated price elasticities are calculated by a Quadratic Almost Ideal demand system and then the effect of simultaneous increases in world food prices on welfare of rural households is studied in order to compute the vulnerability index and poverty variations. Results show that after rising food prices, the households’ welfare significantly gets worse, so that the corresponding compensated variation equals to 530.78 thousand Iranian Rials, which accounts for 6.28% of mean monthly income of the rural households. This limit defines the vulnerability index. Based on the computed poverty line, i.e. 2772.71 thousand Iranian Rials, over 49% of the households spend less for food. In other words, they suffer from food poverty. The results also show that nearly 14 percent (about 2764 households) has been added to the share of poor households because of rising food prices. The findings of this study can be used to design economic policies in order to protection of vulnerable groups, food security and social welfare.http://ecor.modares.ac.ir/article-18-3414-en.pdffood importsmultiple price changeswelfarepovertyvulnerabilityiran
spellingShingle ghasem layani
Mohammad Bakhshoodeh
Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
پژوهشهای اقتصادی
food imports
multiple price changes
welfare
poverty
vulnerability
iran
title Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
title_full Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
title_fullStr Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
title_full_unstemmed Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
title_short Effects of Rising Food Prices on Poverty and Vulnerability of the Iranian Rural Households
title_sort effects of rising food prices on poverty and vulnerability of the iranian rural households
topic food imports
multiple price changes
welfare
poverty
vulnerability
iran
url http://ecor.modares.ac.ir/article-18-3414-en.pdf
work_keys_str_mv AT ghasemlayani effectsofrisingfoodpricesonpovertyandvulnerabilityoftheiranianruralhouseholds
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