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GTAP Resource #6898

"Meeting Dietary Needs of Poor Households under Stress: An Integrated Commodity/Food Group Household Simulation Model"
by Robinson, Sherman, Kristi Mahrt, Emily Schmidt and Channing Arndt

This paper uses recent work defining healthy diet measures of poverty lines as the starting point for developing household simulation models that operate with a two-level utility function. At the top level, utility is defined in terms of aggregates of food groups and nonfood. There is a vast theoretical and empirical literature specifying and estimating expenditure functions at this level. At the commodity level, behavior is based on a sparse specification of utility, assuming only that observed data sets reflect preferences. This paper uses the linear expenditure system (LES) at the aggregate level. Changes in commodity demand in reaction to shocks (changes in prices and income) are assumed to follow an entropic adjustment procedure that is based on information theory. The resulting two-level LES/entropy household simulation model is implemented with household data on healthy diet poverty lines for Myanmar and Papua New Guinea (PNG). The household models are then shocked with comparable changes in prices and incomes to measure their ability to maintain nutrition standards under stress. The simulation results indicate that poor households operating near the poverty line in the two countries are potentially resilient to negative shocks (prices or incomes) amounting to 11-17 percent of real expenditure. These results indicate that, for these households, policy makers can prioritize groups outside of the resilient range of negative shocks in order to target assistance to households with unmanageable stress on diets.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Created: Robinson, S. (4/13/2023)
Updated: Robinson, S. (4/13/2023)
Visits: 280
- Advances in quantitative methods
- Model extension/development
- Other data bases and data issues
- Food prices and food security
- Economic analysis of poverty
- Economic development
- Health
- Econometric methods
- Asia (Southeast)

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