IFPRI--training material

Income, Prices, and Nutrition
Tufts University and IFPRI Course. 2002.

Syllabus
This class introduces basic micro- and macro-economic concepts important to food policy. The 19 sessions that will run 135 minutes each will place emphasis on understanding alternative economic policies, and how and why they can affect food consumption and nutrition. Current research and work in progress (mostly by IFPRI colleagues) will illustrate many of the concepts discussed in class, as well as "classic" readings in food policy.

One in-class quiz and one take-home exam will be given during the semester. A term paper will be required. Reading for a given week is to be completed before that class meets.

Term Paper: Select one specific price or income related economic policy in a particular country and analyze its effects on food consumption and nutritional status of different groups. You need to describe the program; analyze it using the analytic concepts and skills you have learned in the course; and come up with your own recommendations about the program: should it be maintained, modified, eliminated, replaced with something else?

TEXTS
  1. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Food Policy Analysis. Baltimore, Maryland: Johns Hopkins University Press.
  2. Pinstrup-Andersen, Per, ed. 1988. Food Subsidies in Developing Countries: Costs, Benefits, and Policy Options. Baltimore, Maryland: Johns Hopkins University Press.
  3. Lipsey, R.G., P.N. Courant, and C.T.S. Ragan. 1999. Economics 12th ed. Reading, Massachusetts: Addison-Wesley.
  4. von Braun, J., and E. Kennedy. 1994. Agricultural Commercialization, Economic Development, and Nutrition. Baltimore, Maryland: Johns Hopkins University Press
  5. Haddad, L., J. Hoddinott, and H. Alderman. 1997. Intrahousehold Resource Allocation in Developing Countries: Models, Methods, and Policy. Baltimore, Maryland: Johns Hopkins University Press
TOPICS AND READING ASSIGNMENTS
    SESSION 1
    Topic:
    1. Overview of the role of incomes and prices in determining nutritional status
    2. Policy approaches to incomes and prices as mechanisms for affecting food consumption
    3. Methods for evaluating effectiveness of price and income policies (overview)
    4. Effectiveness of price and income policies


    SESSIONS 2 & 3

    Topic:

      Basic economic concepts: Supply, demand, equilibrium, price formation, and elasticity
    Presentation and Readings:
    1. Liu, D. 2000. Lecture 1: Basic concepts: Demand, supply, and equilibrium.
    2. Lipsey, R.G., P.N. Courant, and C.T.S. Ragan. 1999. Chapter 4: Demand, Supply, and Price. In Economics, eds. R.G. Lipsey, P.N. Courant, and C.T.S. Ragan. Reading, Massachusetts: Addison-Wesley.
    3. Lipsey, R.G., P.N. Courant, and C.T.S. Ragan. 1999. Chapter 5: Elasticitiy. In Economics, eds. R.G. Lipsey, P.N. Courant, and C.T.S. Ragan. Reading, Massachusetts: Addison-Wesley.
    4. Lipsey, R.G., P.N. Courant, and C.T.S. Ragan. 1999. Chapter 6: Demand and Supply in Action. In Economics, eds. R.G. Lipsey, P.N. Courant, and C.T.S. Ragan. Reading, Massachusetts: Addison-Wesley.
    5. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Chapter 1: Introduction to food policy analysis. In Food Policy Analysis, eds. C.P. Timmer, W.P. Falcon, and S.R. Pearson. Baltimore, Maryland: Johns Hopkins University Press.


    SESSIONS 4 & 5

    Topic:

    1. Basic economic concepts: Household consumption, utility analysis, indifference curve analysis, income and substitution effects, normal and inferior foods, and income-specific consumption parameters
    2. Extensions: Demand for micronutrients; effects of intrahousehold distribution on elasticity estimates, time allocation, and demand for food

    Readings:

    1. Lipsey, R.G., P.N. Courant, and C.T.S. Ragan. 1999. Chapter 7: Consumer Behavior. In Economics, eds. R.G. Lipsey, P.N. Courant, and C.T.S. Ragan. Reading, Massachusetts: Addison-Wesley.
    2. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Chapter 2: Analysis of food consumption and nutrition. In Food Policy Analysis, eds. C.P. Timmer, W.P. Falcon, and S.R. Pearson. Baltimore, Maryland: Johns Hopkins University Press.

    Additional readings for extensions:

    1. Bouis, H., and M. J. Novenario-Reese. 1997. The determinants of demand for micronutrients: An analysis of rural households in Bangladesh. FCND Discussion Paper No. 32. Washington, D.C.: International Food Policy Research Institute.
    2. Behrman, J., and A. Deolalikar. 1990. The intrahousehold demand for nutrients in rural south India: Individual estimates, fixed effects, and permanent income. Journal of Human Resources 25 (4): 635-696.
    3. Waterfield, C. 1985. Disaggregating food consumption parameters: Designing targeted nutritional interventions. Food Policy 10(4): 337-351.
    4. Senauer, B., D. Sahn, and H. Alderman. 1986. The effect of the value of time on food consumption patterns in developing countries: Evidence from Sri Lanka. American Journal of Agricultural Economics 68(4): 920-43.


    SESSIONS 6 & 7
    Topic:

    1. Farm household behavior and price policy: Production functions, marketed surplus, and prices as determinants of income and consumption of farmers and non-farmers
    2. Extensions: Nutrition and farm productivity, gender and agricultural production, and agricultural supply and nutrition

    Readings:

    1. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Chapter 3: Analysis of food production systems. In Food Policy Analysis, eds. C.P. Timmer, W.P. Falcon, and S.R. Pearson. Baltimore, Maryland: Johns Hopkins University Press.
    2. Strauss, J. 1986. Does better nutrition raise farm productivity? Journal of Political Economy 94 (2): 297-320.
    3. Quisumbing, A.R. 1996. Male-female differences in agricultural productivity: Methodological issues and empirical evidence. World Development 24 (10): 1579-1595.
    4. Udry, C., J. Hoddinott, H. Alderman, and Lawrence Haddad. 1995. Gender differentials in farm productivity: Implications for household efficiency and agricultural policy. Food Policy 20 (5): 407-423.
    5. Ruel, M., and C. Levin. 2000. Assessing the potential for food-based strategies to reduce vitamin a and iron deficiencies: A review of recent evidence. FCND Discussion Paper No. 92. Washington, D.C.: International Food Policy Research Institute.
    6. Pinstrup-Andersen, P., N. R. de Londoņo, and E. Hoover. 1976. The impact of increasing food supply on human nutrition: Implications for commodity priorities in agricultural research and policy. American Journal of Agricultural Economics 58(2): 131-142.
    7. Kherallah, M., N. Minot, and P. Gruhn. 1999. Adjustment of wheat production to market reform in Egypt. MSSD Discussion Paper No. 32. Washington, D.C.: International Food Policy Research Paper.
    8. Ahmed, R. 1995. Liberalization of agricultural input markets in Bangladesh: Process, impact, and lessons. Agricultural Economics 12(2): 115-128.
    9. Pinstrup-Andersen, P. 1985. Food prices and the poor in developing countries. European Review of Agriculture Economics 12(1-2): 83-85.
    10. Kennedy, E., H. Bouis and J. von Braun. 1992. Health and nutrition effects of cash crop production in developing countries: A comparative analysis. Social Science and Medicine 35 (5): 689-97.


    SESSIONS 8 & 9
    Topic:

    1. Markets: Functions and failures

    Presentation and Readings:

    1. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Chapter 4: Marketing functions, markets, and food price formation. In Food Policy Analysis, eds. C.P. Timmer, W.P. Falcon, and S.R. Pearson. Baltimore, Maryland: Johns Hopkins University Press.
    2. IFPRI and FOFIFA. 1998. Structure and conduct of major agricultural input and output markets and response to reforms by rural households in Madagascar: Introduction and executive summary. Agricultural Market Reforms and Their Impact on Rural Households in Madagascar Final Report. Washington, D.C.: International Food Policy Research Institute.
    3. Beghin, J., W. Foster, and M. Kherallah. 1996. Institutions and market distortions: International evidence for tobacco. Journal of Agricultural Economics 47(3): 355-365.
    4. Kherallah, M., and J. Kirsten. 2001. The new institutional economics: Applications for agricultural policy research in developing countries. MSSD Discussion Paper No. 41. Washington, D.C.: International Food Policy Research Institute.
    5. Kherallah, M., J. Maluccio, and N. McCarthy. 2000. New institutional economics: What's New and what does it mean for IFPRI. PowerPoint. Washington, D.C.: International Food Policy Research Institute.


    SESSIONS 10 & 11
    Topic:

    1. Consumer price interventions: Explicit subsidies to consumers, implicit subsidies to consumers, subsidies to producers, effectiveness, and implementation issues

    Readings:

    1. Kumar, S., and H. Alderman. 1988. Food consumption and nutrition effects of consumer-oriented food subsidies. In Food Subsidies in Developing Countries: Costs, Benefits and Policy Options, ed. Per Pinstrup-Andersen. Baltimore, Maryland: Johns Hopkins University Press.
    2. Pinstrup-Andersen, P., and H. Alderman. 1988. The effectiveness of consumer-oriented food subsidies in reaching rationing and income-transfer goals. In Food Subsidies in Developing Countries: Costs, Benefits, and Policy Options, ed. Per Pinstrup-Andersen. Baltimore, Maryland: Johns Hopkins University Press.
    3. Rogers, B. 1988. Design and implementation considerations for consumer-oriented food subsidies. In Food Subsidies in Developing Countries: Costs, Benefits, and Policy Options, ed. Per Pinstrup-Andersen. Baltimore, Maryland: Johns Hopkins University Press.
    4. Schneider, R. 1988. A framework for analyzing food subsidies. World Development 16 (7): 835-845.
    5. Waterfield, C. 1985. Disaggregating food consumption parameters: Designing targeted nutritional interventions. Food Policy 10 (4): 337-351.
    6. Hoddinott, J. 1999. Targeting: Principles and practice. Technical Guide No. 9. Washington, D.C.: International Food Policy Research Institute.
    7. World Bank. 1996. Republic of Tunisia from universal food subsidies to a self-targeted program. World Bank Report No. 15878-TUN. Washington, D.C.: World Bank
    8. Low, J., J. Garret, and V. Ginja. 1999. Can cash transfer programs work in resource-poor countries? The experience of Mozambique. FCND Discussion Paper No. 74. Washington, D.C.: International Food Policy Research Institute.


    SESSION 12
    Topic:

    1. Income interventions: Types, effectiveness, and differences between LDCs and developed safety net and food for work programs


    SESSION 13
    One-hour in-class quiz on graphical analysis; wrap up of demand, supply, and markets discussions.


    SESSIONS 14 & 15
    Topic:

    1. Intrahousehold issues: alternative views of the household, evidence on intrahousehold allocation, household composition and individual consumption, differential control of assets and incomes within the household

    Readings:

    1. Alderman, C., L. Haddad, J. Hoddinott, and R. Kanbur. 1995. Unitary versus collective models of the household: Time to shift the burden of proof? World Bank Research Observer 10 (1): 1-20.
    2. Quisumbing, A., and J. Maluccio. 2000. Intrahousehold allocation and gender relations: New empirical evidence from four developing countries. FCND Discussion Paper 84. Washington, D.C.: International Food Policy Research Institute.
    3. Haddad, L., C. Peņa, C. Nishida, A. Quisumbing, and A. Slack. 1996. Food security and nutrition implications of intrahousehold bias: A review of the literature. FCND Discussion Paper No. 19. Washington, D.C.: International Food Policy Research Institute.
    4. Kennedy, E. 1994. Effects of sugarcane production in southwestern Kenya on income and nutrition. In Agricultural Commercialization, Economic Development, and Nutrition, eds. J. von Braun and E. Kennedy. Baltimore, Maryland: Johns Hopkins University Press.
    5. Kumar, S.K., and C. Siandwazi. 1994. Maize in Zambia: Effects of technological change on food consumption and nutrition. In Agricultural Commercialization, Economic Development, and Nutrition, eds. J. von Braun and E. Kennedy. Baltimore, Maryland: Johns Hopkins University Press
    6. von Braun, J., K.B. Johm, and D. Puetz. 1994. Nutritional effects of commercialization of a woman's crop: Irrigated rice in the Gambia. In Agricultural Commercialization, Economic Development, and Nutrition, eds. J. von Braun and E. Kennedy. Baltimore, Maryland: Johns Hopkins University Press
    7. Peters, P. E., and M.G. Herrera. 1994. Tobacco cultivation, food production, and nutrition among smallholders in Malawi. In Agricultural Commercialization, Economic Development, and Nutrition, eds. J. von Braun and E. Kennedy. Baltimore, Maryland: Johns Hopkins University Press


    SESSION 16
    Topic:

    1. Policy analysis case study

    Readings:

    1. Bangladesh: IFPRI-BIDS-IFNS. 1998. Commercial vegetable and polyculture fish production in Bangladesh: Their impacts on income, resource allocation, and nutrition. Donor Report.
    2. Skoufias, E. and B. McClafferty. 2001. Is Progresa working? Summary of the results of an evaluation by IFPRI. FCND Discussion Paper No. 118. Washington, D.C.: International Food Policy Research Institute.


    SESSIONS 17 & 18
    Topic:

    1. Macro food policy: Macro prices and food sector, rural-urban terms of trade, and issues of urban bias

    Readings:

    1. Timmer, C. P., W.P. Falcon, and S.R. Pearson. 1983. Chapter 4: Marketing functions, markets, and food price formation. In Food Policy Analysis, eds. C.P. Timmer, W.P. Falcon, and S.R. Pearson. Baltimore, Maryland: Johns Hopkins University Press.
    2. Datt, G., E. Payongayong, J. Garrett, and M. Ruel, 1997. The GAPVU cash transfer program in Mozambique: An assessment. FCND Discussion Paper No. 36. Washington, D.C.: International Food Policy Research Institute.
    3. A take-home exam will be distributed at the end of this session, due at the beginning of the next session.


    SESSION 19
    Topic:

    1. Structural adjustment

    Readings:

    1. Pinstrup-Andersen, P. 1988. Macroeconomic adjustment and human Nutrition. Food Policy 13(1):37-46.
    2. Haddad, L., L.R. Brown, A. Richter, and L. Smith. 1995. The gender dimensions of economic adjustment policies: Potential interactions and evidence to date. World Development 23(6):881-896.


    OTHER TOPICS TO CONSIDER:

      Topic 1: Income interventions: Types, effectiveness, differences between LDCs and developed countries, and intrahousehold distribution issues
      Readings:
      1. Davis, C.G. 1982. Linkages between socioeconomic characteristics, food expenditure patterns, and nutritional status of low-income households: A critical review. American Journal of Agricultural Economics 64(5): 1017-1025.
      2. West, D. A., and D.W. Price. 1976. The effects of income, assets, food programs, and household size on food consumption. American Journal of Agricultural Economics 58(4): 725-730.
      3. Alderman, H. 1993. New research on poverty and malnutrition: What are the implications for policy? In Including the Poor, eds. M. Lipton and J. van der Gaag. Washington, D.C.: World Bank.
      4. Von Braun, J. 1999. Social security in Sub-Saharan Africa: Reflections on policy challenges. In Social Security in Developing Countries, ed. E. Ahmad. New Dehli, London: Oxford University Press.
      5. Adams, R. 2000. Self-targeted subsidies: The distributional impact of the Egyptian food subsidy System. World Bank Policy Research Working Paper # 2322. Washington, D.C.: World Bank.
      6. Ahmed, A., H. Bouis, T. Gutner, and H. Lofgren. 2001. The Egyptian food subsidy system: Structure, performance, and options for reform. Research Report No. 119. Washington, D.C.: International Food Policy Research Institute.
      7. Teklu, T. 1996. Food demand studies in Sub-Saharan Africa: A survey of empirical evidence. Food Policy 21(6): 479-496.
      8. Zeller, M., and M. Sharma. 1998. Rural Finance and Poverty Alleviation. Food Policy Report No. 25. Washington, D.C.: International Food Policy Research Institute.

      Topic 2: Income Intervention: Agricultural income interventions, agricultural commercialization versus subsistence agriculture, and effects of increasing food production and/or cash incomes
      Readings:

      1. Sharma, K. 1999. Farm commercialization and nutritional status of children: The case of the vegetables, fruits, and cash crops programme in western Nepal. Food and Nutrition Bulletin 20(4): 445-453.
      2. Sahn. D. 1990. The impact of export crop production on nutritional status in Côte d'Ivoire. World Development 18 (12): 1635-1653.
      3. Hoddinott, J. 1997. Water, health and income: A review. FCND Discussion Paper No 25. Washington, D.C.: International Food Policy Research Institute.
      4. Hans B., and J. von Braun. 1991. Technological change and commercialization in agriculture: The effect on the poor. World Bank Research Observer 6(1): 57-80.

      Topic 3: Biotechnology
      Readings:

      1. Gabrielle P., ed. 1999. Biotechnology for developing country agriculture: Problems and opportunities. 2020 Focus No. 2. Washington, D.C.: International Food Policy Research Institute.
      2. Nielsen, C.P., K. Thierfelder, and S. Robinson. 2001. Genetically Modified Foods, Trade, and Developing Countries. TMD Discussion Paper No. 77. Washington, D.C.: International Food Policy Research Institute. (PDF 134K)

      Topic 4: Urban vs. Rural
      Readings:

      1. Garrett, J., and M. Ruel. 1999. Are determinants of rural and urban food security and nutritional status different? Some insights from Mozambique. FCND Discussion Paper No. 65. Washington, D.C.: International Food Policy Research Institute.
      2. Garrett, J. and M. Ruel. 2000. Achieving Urban Food and Nutrition Security in the Developing World. 2020 Focus No. 3. Washington, D.C.: International Food Policy Research Institute.

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