Analyzing Food Price Trends in the Context of Engel's Law and the Prebisch-Singer Hypothesis / Baffes, John
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: World Bank E-Library ArchivePublisher: Washington, D.C : The World Bank, 2015Description: 1 Online-Ressource (37 p)Additional physical formats: Erscheint auch als: Analyzing Food Price Trends in the Context of Engel's Law and the Prebisch-Singer Hypothesis. Druck-Ausgabe Washington, D.C : The World Bank, 2015DOI: DOI: 10.1596/1813-9450-7424Online resources: Summary: Income growth in emerging economies has often been cited as a key driver of the past decade's com-modity price boom-the longest and broadest boom since World War II. This paper shows that income has a negative and highly significant effect on real food commodity prices, a finding that is consistent with Engel's Law and Kindleberger's thesis, the predecessors of the Prebisch-Singer hypothe-sis. The paper also shows that, in the long run, income influences real food prices mainly through the manufacturing price channel (the deflator), hence weakening the view that income growth exerts strong upward pressure on food prices. Other (short-term) drivers of food prices include energy costs, inventories, and monetary conditionsPPN: PPN: 1724863053Package identifier: Produktsigel: ZDB-1-WBANo physical items for this record