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