Analyzing Food Price Trends In The Context Of Engel’s Law And The Prebisch-singer Hypothesis

  • Date Published 14/12/2024
Analyzing Food Price Trends In The Context Of Engel’s Law And The Prebisch-singer Hypothesis
Analyzing Food Price Trends In The Context Of Engel’s Law And The Prebisch-singer Hypothesis

Income growth in emerging economies has often been cited as a key driver of the past decade’s commodity price boom—the longest and broadest boom since World War II. This paper shows that in-come 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 conditions.

Show More

Analyzing Food Price Trends In The Context Of Engel’s Law And The Prebisch-singer Hypothesis

Get Latest Lawscope Library Update

Subscribe Our Newsletter

Stay in the loop with our latest additions and updates! By subscribing to our newsletter, you'll receive timely notifications whenever we enrich our library with new books or articles. Plus, you'll get firsthand news from our blog.
So why wait? Subscribe now, and become part of our ever-expanding literary community!