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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The Egyptian Food Subsidy System: Operation and Effects on Income Distribution
Authors:Ali, Sonia M.
Adams, Richard H.
Year:1996
Periodical:World Development
Volume:24
Issue:11
Period:November
Pages:1777-1791
Language:English
Geographic term:Egypt
Subjects:income distribution
subsidies
food
Economics and Trade
External link:https://doi.org/10.1016/0305-750X(96)00067-8
Abstract:This paper examines the effect of the Egyptian food subsidy system on income distribution. Confronted with budgetary deficits and pressure from international institutions, the government of Egypt has since the mid-1980s successfully reduced the size of its food subsidy programme. The programme now includes only bread, wheat flour, sugar and oil. Even though these four subsidized foods are basically available to all Egyptians, the present study finds that the system is 'self-targeted' to the poor because it subsidizes 'inferior foods'. Results of a new 'food characteristic demand system' show that two of the four subsidized foods - bread and sugar - are inferior foods. Egyptian food subsidies thus have a positive impact on income distribution. Policy recommendations conclude the paper. Bibliogr., notes, ref., sum.
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