Access the beta version of the Medium-Term Welfare Effects of Higher Food Prices
Simulator User Login: Simulator.User@ifpri.org; password: 123456
View a short tutorial below.
Question
What is the effect of a price change on different types of households in the medium-term?
Net Benefit Ratio Analysis, Long-run
The welfare impact caused by an increase in price that takes into account the household response to the new prices.
Data Requirements
- Share of income gained from sale of commodity
- Share of expenditure used to purchase commodity
- Proportional change in the price of the commodity
- Elasticity of supply of commodity
- Price elasticity of demand
| Variables | |
|---|---|
| i | commodity |
| Δ y/y | proportional change in household welfare (usually expressed in terms of the value of household consumption) |
| fi | share of income from the sale of i |
| si | share of expenditure going to the purchase of i |
| Δ pi / pi | proportion change in the price of i |
| εsi | elasticity of supply of i |
| εDi | price elasticity of demand for i |
Output:
Estimates of the medium-term percentage change in welfare for different types of households as a result of the price change.
| Preview | Attachment | Size |
|---|---|---|
| Welfare_Simulator_How_To.pdf | 97.01 KB |