Why Is Food Cheaper in Rich (European) Countries?
By: Podkaminer, Leon.
Material type:
BookSeries: wiiw Research Reports: 322Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2005Description: 31 S., 2 Tables and 6 Figures, 30cm.Subject(s): relative prices | structural change | cross-country demand functions | demand for foodCountries covered: European Unionwiiw Research Areas: Sectoral studies | International Trade, Competitiveness and FDI | Macroeconomic Analysis and PolicyClassification: O14 | D12 | D51 Online resources: Click here to access online Summary: Relative to non-food items, food tends to be cheaper in rich, as compared with poor European countries. This tendency cannot be explained in terms of cost developments or foreign-trade considerations. A positive explanation proposed focuses on demand-income-supply interaction. An analysis of a cross-country price-augmented modification of Engel's Law, econometrically specified, indicates that the relative price of food is related positively to the supply of food items and negatively to that of non-food items. This finding is consistent with ¿agricultural price scissors' and also casts a different light on the nature of economic development and structural change.
| Item type | Current library | Call number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|
| Paper | WIIW Library | 5.600/322 (Browse shelf(Opens below)) | Available | 1000010000350 |
Relative to non-food items, food tends to be cheaper in rich, as compared with poor European countries. This tendency cannot be explained in terms of cost developments or foreign-trade considerations. A positive explanation proposed focuses on demand-income-supply interaction. An analysis of a cross-country price-augmented modification of Engel's Law, econometrically specified, indicates that the relative price of food is related positively to the supply of food items and negatively to that of non-food items. This finding is consistent with ¿agricultural price scissors' and also casts a different light on the nature of economic development and structural change.
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