scholarly journals Weather shocks, traders' expectations, and food prices

2021 ◽  
Author(s):  
Marco Letta ◽  
Pierluigi Montalbano ◽  
Guillaume Pierre
Keyword(s):  
Food Prices ◽  
Weather Shocks

scholarly journals IMPROVING FOOD POLICIES FOR A CLIMATE INSECURE WORLD: EVIDENCE FROM ETHIOPIA

2021 ◽  
Vol 258 ◽  
pp. 66-82
Author(s):  
Shouro Dasgupta ◽  
Elizabeth J. Z. Robinson
Keyword(s):  
Food Insecurity ◽  
Food Systems ◽  
Household Survey ◽  
Safety Net ◽  
Food Prices ◽  
Climate Data ◽  
Weather Shocks ◽  
Cash Assistance ◽  
Agricultural Yields ◽  
Food Insecure Households

Climate change and weather shocks have multi-faceted impacts on food systems with important implications for economic policy. Combining a longitudinal household survey with high-resolution climate data, we demonstrate that both climate and weather shocks increase food insecurity; cash assistance and participation in Ethiopia’s Productive Safety Net Programme have reduced food insecurity; but food assistance has been ineffective. Importantly, households with savings, and those that stored their harvest to sell at higher prices rather than for home use, suffered less from food insecurity, yet both strategies are harder for the poorest and most food insecure households to adopt. Our paper provides micro-founded evidence needed to design policies that both improve agricultural yields in the context of a changing climate and target households’ abilities to cope with shocks that put upwards pressure on food prices.

Communication Infrastructure and Stabilizing Food Prices: Evidence from the Telegraph Network in China

2021 ◽  
Vol 13 (3) ◽  
pp. 65-101
Author(s):  
Pei Gao ◽  
Yu-Hsiang Lei
Keyword(s):  
Nineteenth Century ◽  
Price Volatility ◽  
Food Prices ◽  
Difference In Difference ◽  
Information Frictions ◽  
Communication Infrastructure ◽  
Weather Shocks ◽  
Local Weather ◽  
Grain Prices

This paper exploits a unique historical setting—the expansion of the telegraph network in nineteenth-century China when railroads were limited—to examine whether the reduction of information frictions stabilizes grain prices. Employing a difference-in-difference (DID) strategy, we find that the telegraph access (i) reduced both the magnitude and the incidence of extreme prices; (ii) mitigated price responses to local weather shocks but increased the responsiveness to shocks in other telegraph-connected regions; (iii) affected the price volatility in a mean-reverting pattern; i.e., volatility rose in previously price-stable regions, and volatility decreased in price-unstable regions. (JEL D83, L96, N55, N75, O13, O18, Q11)

How volatile are African food prices

2013 ◽  
Author(s):  
International Food Policy Research Institute (IFPRI)
Keyword(s):  
Food Prices

Global Food Commodity Prices and Domestic Food Inflation: Some Insights from Morocco

New Medit ◽  
2020 ◽  
Vol 19 (3) ◽  
Author(s):  
Ahmed EL GHIN ◽  
Mounir EL-KARIMI
Keyword(s):  
Exchange Rate Regime ◽  
Commodity Prices ◽  
Food Prices ◽  
Consumer Prices ◽  
Floating Exchange Rate ◽  
Pass Through ◽  
The Impact ◽  
Food Inflation ◽  
Global Food ◽  
Domestic Food

This paper examines the world commodity prices pass-through to food inflation in Morocco, over the period 2004-2018, by using Structural Vector Autoregression (SVAR) model on monthly data. Several interesting results are found from this study. First, the impact of global food prices on domestic food inflation is shown significant, which reflects the large imported component in the domestic food consumption basket. Second, the transmission effect is found to vary across commodities. Consumer prices of cereals and oils significantly and positively respond to external price shocks, while those of dairy and beverages are weakly influenced. Third, there is evidence of asymmetries in the pass-through from world to domestic food prices, where external positive shocks generate a stronger local prices response than negative ones. This situation is indicative of policy and market distortions, namely the subsidies, price controls, and weak competitive market structures. Our findings suggest that food price movements should require much attention in monetary policymaking, especially that the country has taken preliminary steps towards the adoption of floating exchange rate regime.

Sign in / Sign up

Export Citation Format

Share Document