Title: Food price cap policy and household welfare in the UAE

Authors: Azzeddine Azzam; Belaid Rettab

Addresses: Department of Agricultural Economics, University of Nebraska-Lincoln, Lincoln, Nebraska, 68503-0922, USA ' Economic Research and Sustainable Business, P.O. Box 1457, Dubai Chamber, Dubai, UAE

Abstract: We estimate the welfare effect of UAE food price cap policy by nationality and income quintile using the country's 2007-2008 household survey. For methodology, we estimate the compensating variation (CV) to price changes with and without the policy. Comparison of CV with and without the policy between the lowest and highest income households reveals that the benefits of the policy vary widely by nationality. Policy implications are discussed.

Keywords: United Arab Emirates; UAE; price caps; food policy; compensating variation; food prices; household welfare; price changes.

DOI: 10.1504/IJEPEE.2013.054473

International Journal of Economic Policy in Emerging Economies, 2013 Vol.6 No.1, pp.64 - 77

Received: 16 Jan 2013
Accepted: 23 Mar 2013
Published online: 28 Jun 2014 *

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