Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/204094 
Year of Publication: 
2005
Series/Report no.: 
wiiw Research Report No. 322
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
Relative to non-food items, food tends to be cheaper in rich, as compared with poor European countries. This tendency cannot be explained in terms of cost developments or foreign-trade considerations. A positive explanation proposed focuses on demand-income-supply interaction. An analysis of a cross-country price-augmented modification of Engel's Law, econometrically specified, indicates that the relative price of food is related positively to the supply of food items and negatively to that of non-food items. This finding is consistent with ¿agricultural price scissors' and also casts a different light on the nature of economic development and structural change.
Subjects: 
relative prices
structural change
cross-country demand functions
demand for food
JEL: 
O14
D12
D51
Document Type: 
Research Report

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