In a world of food price instability, how much does poverty increase with higher food prices?

What is it about?

We account for second order effects using a food demand system to demonstrate that food prices do not increase poverty as much as previously reported. Our findings demonstrate that households mitigate some of the negative effects from food price increases by switches their food purchases during higher price periods.

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Why is it important?

By providing policymakers with a more accurate idea of how food prices influence poverty, we hope public policy can be crafted to assist those households most in need.

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