• Economics
  • Published 2010

The Welfare Impacts of Price Fluctuations: Evidence from Rural Ethiopia

@inproceedings{Bellemare2010TheWI,
  title={The Welfare Impacts of Price Fluctuations: Evidence from Rural Ethiopia},
  author={Marc F. Bellemare and Christopher B. Barrett and David r. Just},
  year={2010}
}
Many governments throughout history have tried to stabilize commodity prices based on the widespread belief that households – especially the poor – value price stability. We extend the existing microeconomic theory literature to derive an estimable matrix of the coefficients of price risk aversion and associated willingness to pay measures over multiple commodities. Using longitudinal household-level data from Ethiopia, we then estimate that the average household would be willing to pay almost… CONTINUE READING

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