Asymmetric Response of Nutrient Intakes to Cereal Price Changes among the Poor in China: Implications for the Effect of Cereal Price Subsidies on the Poor’s Nutrient Intakes

Previous studies commonly assume that the effects of introducing and ending cereal price subsidies on the poor’s nutrient intakes are symmetric. We question the assumption of symmetry and show that the poor’s nutrient intakes respond asymmetrically to declines and increases in the price of cereal in China. Our results imply that introducing cereal price subsidies can increase the poor’s total energy intake by increasing their calorie intakes from fat and protein, and that ending such subsidies would insignificantly affect the poor’s total energy intake; however, it may further increase their calorie intakes from fat and protein.