Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. October 8, 2012 Terms of use: Documents in AbstractThe threshold vector error correction model is a popular tool for the analysis of spatial price transmission and market integration. In the literature, the profile likelihood estimator is the preferred choice for estimating this model. Yet, in certain settings this estimator performs poorly. In particular, if the true thresholds are such that one or more regimes contain only a small number of observations, if unknown model parameters are numerous or if parameters differ little between regimes, the profile likelihood estimator displays large bias and variance. Such settings are likely when studying price transmission. For simpler, but related threshold models Greb et al. (2011) have developed an alternative estimator, the regularized Bayesian estimator, which does not exhibit these weaknesses. We explore the properties of this estimator for threshold vector error correction models. Simulation results show that it outperforms the profile likelihood estimator, especially in situations in which the profile likelihood estimator fails. Two empirical applications -a reassessment of the the seminal paper by Goodwin and Piggott (2001), and an analysis of price transmission between German and Spanish markets for pork -demonstrate the relevance of the new approach for spatial price transmission analysis.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Stephan Klasen*, Tatyana Krivobokova*, Friederike Greb**, Rahul Lahoti*, Syamsul Hidayat Pasaribu***, and Manuel Wiesenfarth**** August, 2015 Terms of use: Documents in AbstractIn this paper, we critically review conceptual and empirical issues surrounding the derivation of the international poverty line, expressed in PPP-adjusted dollars and linked to various rounds of the International Comparison of Prices (ICP). We find that there are some limitations in the current estimation of these lines, but show that statistically superior methods lead to lines that are relatively robust and confirm the $1.25 using 2005PPPs and suggest $1.67-1.71 using 2011PPPs; they also roughly confirm the current shape of the proposed 'weakly relative' poverty line. Using the new absolute line using 2011 PPPs would lead to substantially lower poverty in our estimation. The extent of the decline depends on whether and how one treats China, India, and Indonesia differently from other countries in the 2005 and 2011 PPPs. More seriously, we note that the dependence on the conceptual and empirical problems associated with the link to successive ICP rounds creates problems that have gotten worse over time so that we suggest that it would be best to consider alternatives to the current reliance on ICP rounds and the resulting PPPs. As a quick fix we propose to fix the international poverty line in national currencies using either the 2005 or 2011 level; in the medium term, we argue for global poverty measurement based on internationally coordinated national poverty measurement.
Ensuring sustainable food systems requires vastly reducing their environmental and health costs while making healthy and sustainable food affordable to all. One of the central problems of current food systems is that many of the costs of harmful foods are externalized, i.e., are not reflected in market prices. At the same time, the benefits of healthful foods are not appreciated. Due to externalities, sustainable and healthy food is often less affordable to consumers and less profitable for businesses than unsustainable and unhealthy food. Externalities and other market failures lead to unintended consequences for present and future generations, destroying nature and perpetuating social injustices such as underpay for workers, food insecurity, illness, premature death and other harms. We urgently need to address the fundamental causes of these problems. This chapter sets out the results of an analysis to determine the current cost of externalities in food systems and the potential impact of a shift in diets to more healthy and sustainable production and consumption patterns. The current externalities were estimated to be almost double (19.8 trillion USD) the current total global food consumption (9 trillion USD). These externalities accrue from 7 trillion USD (range 4–11) in environmental costs, 11 trillion USD (range 3–39) in costs to human life and 1 trillion USD (range 0.2–1.7) in economic costs. This means that food is roughly a third cheaper than it would be if these externalities were included. More studies are needed to quantify the costs and benefits of food systems that would support a global shift to more sustainable and healthy diets. However, the evidence presented in this chapter points to the urgent need for a system reset to account for these ‘hidden costs’ in food systems and calls for bold actions to redefine the incentives for producing and consuming healthier and more sustainable diets. The first step to correct for these ‘hidden costs’ is to redefine the value of food through true-cost accounting (TCA) so as to address externalities and other market failures. TCA reveals the true value of food by making the benefits of affordable and healthy food visible and revealing the costs of damage to the environment and human health 3.
All countries have a rising burden of diet-related disease from the consumption of unhealthy foods. About three billion people around the world cannot afford the diverse foods needed for a healthy diet. This chapter aims to extend previous work on diet cost and affordability to address the hidden costs of meal preparation inside the home. Costs of a basic meal based on market prices for the most affordable items are estimated in 168 countries. Also, the hidden costs of meal preparation are considered, taking account of environmental or social externalities from the production and distribution of food, as well as the health externalities involved in food consumption. The data shown here reveal that even the simple raw ingredients for a basic plate are often unaffordable for the poorest, and the added cost of time and fuel can make such meals prohibitively expensive. Results suggest two main avenues for policy action. First, governments should use the information on the least costly way to meet dietary standards to inform poverty lines and provide targeted assistance so as to ensure that citizens can acquire safe and nutritious items in sufficient quantities for an active and healthy life, using locale-appropriate safety nets. Second, food policies should recognize the hidden costs of meal preparation that often put healthier, more sustainable diets out of reach. Overcoming the hidden barriers to preparation of healthy meals will require support for helpful forms of food processing that preserve or enhance nutritional values, while taking action to limit potentially harmful forms of ultra-processing associated with diet-related disease. Food-based safety nets and improvements in the food environment can make healthy diets affordable for all people at all times, to help every country reach global development goals.
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