Inferior Commodities and Inframarginal Consumption

The economics literature defines the amount of a commodity transferred or made available at a subsidized price as inframarginal if it is smaller than the amount that consumers would have chosen to purchase at the regular market price. The impact of a subsidy of a commodity on the poor will depend largely on whether the commodity selected is inferior and whether the level of consumption is inframarginal. 

The overall Impact on total nutrient consumption, as measured by calorie intake, tends to increase with the level of income. While one cannot assume that all income increments are spent on increased food consumption, food consumption might increase more than proportionally (see the evidence from South Africa in Alderman and del Ninno 1999 from Bangladesh in del NInno and Dorosh 2003 and from food stamp studies in Fraker, Martini, and Ohis 1995). 

FOR PROTECTION AND PROMOTION THE DESIGN AND IMPLEMENTATION OF EFFECTIVE SAFETY NETS 

Community organization and information can help prevent leakage and fraud. An in-depth analysis of the problems related to leakages in food distribution programs in 

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