Rising food prices at global level have contributed a lot to inflationary trends in developing countries and so in Asian
region as well. Pakistan is a developing country with agriculture as an important sector contributing a lot to the GDP as
compared with other sectors, 21% of GDP in 2007-08[1].
Household aggregate consumption expenditure acts as a welfare indicator. It comprises actual purchases, self produced and consumed items, consumption items received as gifts and as monetary compensation (HIES 2007-08). Using latest available data, this study aims at analyzing the welfare impacts of rising food prices on different segments of the society based on specific socio-economic characteristics of households.
Different studies done in this regard provided varying results regarding the welfare impacts on rural and urban households. So, it is an objective to estimate the likely nature of welfare impacts of rising food prices and which view will be supported by this study results.
Current Progress
1-Unexpected price change (food price crisis ) is estimated.
2-LA-AIDS is estimated without Equivalence Scale
3-Overall, Rural & Urban Price Elasticities (Compensated, Uncompensated, Cross, Direct), Expenditure Elasticities for 2005-06 & 2007-08 estimated
4- Step-2 & 3 with Equivalence scale done
5- All the estimation procedure is repeated using Corrected Stone Price Index
6- Evaluation of results is under process
[1] Pakistan Economic Survey 2007-08.
Welfare Impacts of Rising Food Prices in Pakistan;
A Parametric Analysis (2005-06, 2007-08)