HOW DO WORLD AGRICULTURAL COMMODITY PRICE SPIKES AFFECT THE INCOME DISTRIBUTION IN ISRAEL?

We assess the distributional effects of the transmission of world market price shocks for the highly import dependent economy of Israel. We combine a CGE simulation with an empirical cointegration analysis for assessing the direction and extent of the connectedness of Israeli and world market prices. The Israeli and the world market for wheat are found to be integrated. Price shocks are completely transmitted from the world market to the domestic Israeli market. We find negative effects on the amount of domestic household income, on consumption and on welfare. Regressive expenditure effects dominate progressive income effects so that the resulting domestic income distribution appears to be more unequal.


Variant title:
WIE WIRKEN SICH HOHE WELTMARKTPREISE FÜR AGRARPRODUKTE AUF DIE EINKOMMENSVERTEILUNG IN ISRAEL AUS?
Issue Date:
2012
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/137154
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-26

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