Trade, Tastes and Nutrition in India

This paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the correlation between tastes and agro-climatic endowments overstates the short-run nutritional gains from agricultural trade liberalization and masks potential caloric losses for laborers. I examine the predictions of this model of trade with habit formation using household survey data from India, both by looking across Indian regions and by examining the consumption patterns of inter-state migrants.


Issue Date:
2010-04
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/60710
PURL Identifier:
http://purl.umn.edu/60710
Total Pages:
83
JEL Codes:
O10; O12; Q17; F10
Series Statement:
Economic Growth Center Discussion Paper
986




 Record created 2017-04-01, last modified 2020-10-28

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