Zahoor Ul Haq|Hina Nazli|Karl D. Meilke
Implications of high food prices for poverty in Pakistan
University of Guelph|University of Guelph|University of Guelph
abstract study estimates impacts rising world food prices poverty rural urban areas pakistan household income expenditure data 20042005 used estimate compensated uncompensated price expenditure elasticities using linear approximation almost ideal demand system taking unexpected component higher domestic food prices 20072008 cross price compensated elasticities used derive changes quantity consumed food expenditure impacts poverty assuming food crisis happened 20042005 results indicate poverty increased 348 severely affecting urban areas poverty increased 446 compared 325 rural areas estimates show 23 million people unable reach even onehalf poverty line expenditures another 137 million 239 million poverty line short run important ensure food availability people long run policy environment subsidizing urban food consumers keeping wheat prices lower international price needs reconsidered provide right incentives increase food availability