1 option
Trade Insulation as Social Protection / Quy-Toan Do
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Do, Quy-Toan
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Beggar thy neighbor.
- Economic Theory & Research.
- Emerging Markets.
- Food & Beverage Industry.
- Food prices.
- Food Security.
- Markets and Market Access.
- Poverty Reduction.
- Social protection.
- Trade insulation.
- Local Subjects:
- Beggar thy neighbor.
- Economic Theory & Research.
- Emerging Markets.
- Food & Beverage Industry.
- Food prices.
- Food Security.
- Markets and Market Access.
- Poverty Reduction.
- Social protection.
- Trade insulation.
- Physical Description:
- 1 online resource (26 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2013
- System Details:
- data file
- Summary:
- In a world with volatile food prices, countries have an incentive to shelter their populations from induced real income shocks. When some agents are net food producers while others are net consumers, there is scope for insurance between the two groups. A domestic social protection scheme would therefore transfer resources away from the former group to the latter in times of high food prices, and do the reverse otherwise. This paper shows that in the presence of consumer preference heterogeneity, implementing the optimal social protection policy can potentially induce higher food price volatility. Such policy indeed generates a counter-cyclical demand shock that amplifies the effects of the underlying food shortage. The results call for a reassessment of food stabilization policies. In particular, the authors urge caution against the systematic condemnation of trade insulation practices.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.