The Impact of Different Policy Choices on Income Distribution After Food Production Shocks in Zimbabwe: A Computable General Equilibrium Analysis

Abstract

Abstract: Government controls on the price of food through stock adjustment and through imports of food are explicitly modelled in a computable general equilibrium for Zimbabwe. The results of policy simulations show that allowing the price of food to increase during a drought period increases incomes of food producers only and allowing the price to fall hurts food producers and most groups in the economy via reduced incomes. When we compare a policy of food imports to one of domestic stock adjustment, we find that the latter yields better results for income distribution and output performance.


Eastern Africa Social Science Research Review Vol.XX(1) 2004: 1-26