Food price inflation and consumer welfare in Ghana

Type Journal Article - International Journal of Food and Agricultural Economics (IJFAEC)
Title Food price inflation and consumer welfare in Ghana
Author(s)
Volume 1
Publication (Day/Month/Year) 2014
URL http://EconPapers.repec.org/RePEc:ags:ijfaec:156140
Abstract
The paper analyses the effects of food price inflation on Ghanaian households using GLSS-5 household data. Expenditure endogeneity and truncated expenditures were controlled in the estimation process using the “Augmented Regression Approach†and Heckman’s two-stage procedure, respectively. Symmetry and homogeneity conditions were rejected in the unconstrained LA/AIDS model. The study reveals that cereals and bread; fish; vegetables; and roots and tubers will continue to constitute important share of Ghanaian food expenditure as they collectively constitute 67% of future food expenditure. Food price inflation between 2005 and 2011 has eroded real household food purchasing power by 47.18%.

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