Porto, GuidoLederman, Daniel2014-05-152014-05-152014-05https://hdl.handle.net/10986/18344This paper provides an overview of the impact of once-and-for-all changes in commodity prices and other prices on household welfare. It begins with a collection of stylized facts related to commodities based on household survey data from Latin America and Africa. The data uncover strong commodity dependence in both continents: households typically allocate a large fraction of their budget to commodities and they often depend on commodities to earn their income. This income and expenditure dependency suggests sizable impacts and adjustments following commodity-price shocks. The paper explores these effects with a review of the literature. It studies consumption and income responses, labor-market responses, and spillovers across sectors. It ends up providing evidence on the relative magnitudes of various mechanisms through which commodity prices affect household (and national) welfare in developing economies.en-USCC BY 3.0 IGOADVERSE EFFECTSAGGREGATE SUPPLYAGRICULTURAL PRICESAGRICULTUREARBITRAGEBARRIERCOMMERCIAL FARMINGCOMMODITIESCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ANALYSISCOMPETITIVE MARKETSCONSTANT MARGINAL COSTSCONSUMER GOODSCONSUMER PRICESCONSUMERSCORN PRICESCUSTOMS UNIONDEMAND ANALYSISDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRIBUTION OF INCOMEDOMESTIC ECONOMYDOMESTIC MARKETSDOMESTIC PRICEDOMESTIC PRICESECONOMETRICSECONOMIC CONDITIONSECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC REFORMECONOMICSELASTICITYEMPLOYMENTENERGY PRICESEQUILIBRIUM PRICESEQUILIBRIUM WAGESEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORT BARRIERSEXPORT SECTOREXPORTSFACTOR PRICESFACTORS OF PRODUCTIONFINANCIAL CRISESFINANCIAL CRISISFOOD PRICEFOOD PRICESGDPGENERAL EQUILIBRIUMGLOBAL MARKETGLOBAL MARKETSGLOBALIZATIONIMPERFECT COMPETITIONINCOMEINCOME EFFECTINCOME EFFECTSINCOMESINEFFICIENCYINFANT MORTALITYINSURANCEINTERMEDIATE GOODSINTERNATIONAL MARKETSINTERNATIONAL TRADELABOR DEMANDLABOR FORCELABOR MARKETLABOR MARKETSLABOR REGULATIONSLABOR SUPPLYLIVING STANDARDSLOCAL CURRENCYLOW-INCOME COUNTRIESMARKET EFFICIENCYMARKET EQUILIBRIUMMARKET FAILURESMARKET FLUCTUATIONSMARKET INTEGRATIONMARKET LIBERALIZATIONMARKET POWERMARKET REFORMSMARKET STRUCTUREMARKET VALUEMARKET WAGEMARKETINGMARKETING BOARDMIDDLE-INCOME ECONOMIESNATIONAL ECONOMYNATIONAL INCOMENATURAL RESOURCEOPEN ECONOMYOPPORTUNITY COSTOUTPUTOUTPUTSPOVERTY ALLEVIATIONPRICE CHANGEPRICE CHANGESPRICE DECLINESPRICE EFFECTPRICE ELASTICITYPRICE FLUCTUATIONSPRICE INCREASEPRICE INCREASESPRICE INDEXPRICE INDICESPRICE INFLATIONPRICE VARIATIONSPRICE VOLATILITYPRICING POLICIESPRODUCT MARKETSPRODUCTIVE ASSETSPRODUCTIVITYPURCHASINGPURCHASING POWERRATE OF RETURNREAL WAGESREGIONAL TRADERETAILRISK PREMIUMRURAL LABORSALESALESSAVINGSSHADOW PRICESKILLED LABORSKILLED WORKERSSOCIAL PROTECTIONSUBSTITUTESUBSTITUTIONSUNK COSTSTAXTHIRD WORLDTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE REFORMSTRANSACTION COSTSTRANSACTIONS COSTSUNSKILLED WORKERSUTILITY FUNCTIONUTILITY MAXIMIZATIONVOLATILITYWAGE DETERMINATIONWAGESWEALTHWORKING CAPITAL10.1596/1813-9450-6858