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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Format: | Article |
Language: | fas |
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Tarbiat Modares University
2016-11-01
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Series: | پژوهشهای اقتصادی |
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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. |
first_indexed | 2024-03-13T05:17:51Z |
format | Article |
id | doaj.art-17507dc0404b487596e825bd5f925e3a |
institution | Directory Open Access Journal |
issn | 1735-6768 2980-7832 |
language | fas |
last_indexed | 2024-03-13T05:17:51Z |
publishDate | 2016-11-01 |
publisher | Tarbiat Modares University |
record_format | Article |
series | پژوهشهای اقتصادی |
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 AT mohammadbakhshoodeh effectsofrisingfoodpricesonpovertyandvulnerabilityoftheiranianruralhouseholds |