Trade, Tastes and Nutrition in India

84 Pages Posted: 29 Apr 2010

See all articles by David Atkin

David Atkin

Massachusetts Institute of Technology (MIT) - Department of Economics

Date Written: April 16, 2010

Abstract

This paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the correlation between tastes and agro-climatic endowments overstates the short-run nutritional gains from agricultural trade liberalization and masks potential caloric losses for laborers. I examine the predictions of this model of trade with habit formation using household survey data from India, both by looking across Indian regions and by examining the consumption patterns of inter-state migrants.

Keywords:  International trade, habit formation, India, tastes, nutrition

JEL Classification: O10, O12, Q17, F10

Suggested Citation

Atkin, David G., Trade, Tastes and Nutrition in India (April 16, 2010). Yale University Economic Growth Center Discussion Paper No. 986, Yale Economics Department Working Paper No. 80, Available at SSRN: https://ssrn.com/abstract=1596827 or http://dx.doi.org/10.2139/ssrn.1596827

David G. Atkin (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

50 Memorial Drive
E52-391
Cambridge, MA 02142
United States

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