Cap and Food Security Report as inadecuate

Cap and Food Security - Download this document for free, or read online. Document in PDF available to download.

Although the food security discussion has given more emphasis to the individual (household)level as the proper unit of analysis, it still suffers from applying inappropriate indicators, which aremostly quantity oriented, instead of relying on more recent results of the literature that it is purchasingpower or real income that matters. In addition, it has not been made clear so far how food securitycorresponds to the welfare status of agents. Since food security can more or less be associated with anuncertain world, this should at least be reflected in the value function of individuals who are generally riskaverse. Therefore, it is proposed in the paper that the measurement of both food security and welfare shouldbe based on the probability distribution of adjusted real household income over time on a daily basis. Foodsecurity can then be defined as the probability of any agent's real income exceeding a critical level, whereasthe welfare status is measured as the agent's expected utility of this real income. Special formulas aredeveloped in this context which allow one to calculate producer's and consumer's welfare under priceuncertainty and risk aversion separating the risk response effect from the mean income moving effect ofprice fluctuations. In addition, an alternative measurement of protection in a stochastic world, the so calledreal protection rate, is proposed which simultaneously covers protection against low prices and volatileprices. All these indicators should be used when comparing and evaluating food security or food insecurityof any agent in whatever region. In the paper the concept is utilized to answer the raised question of howthe EU contributes to worldwide food security.

Subject(s): Food Consumption/Nutrition/Food Safety

Food Security and Poverty

Issue Date: 1997

Publication Type: Conference Paper/ Presentation

PURL Identifier: Page range: 157-171

Total Pages: 15

Record appears in: International Association of Agricultural Economists (IAAE) > 1997 Occasional Paper Series No. 7

Author: Schmitz, Michael


Related documents