Impact of a higher price on rice consumption in Bangladesh

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 15 November 2013


Coombs Seminar Room A, Coombs Building, Fellows Road, ANU


Syed Hasan, PhD candidate, Crawford School of Public Policy, ANU.


Robert Sparrow

This paper studies the impact of the 2007-08 price increase on rice consumption in Bangladesh. Using a simple difference-in-difference estimator and household level data, we find a negative impact on rice consumption of net rice buyers compared to households who are self sufficient in rice. On the other hand, we find no significant difference between the two groups in terms of the value of food consumption. In contrast, the rice seller household observes no significant impact on the value of rice consumption but an increase in the value of food consumption. Our analysis suggests providing a subsidy on the low quality food items, which can protect the poor from the consequence of a food price shock.

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