This paper examines the dynamic effects of monsoon rainfall shocks on yield, wages, and prices in the Indian agricultural sector. We distinguish between positive and negative rainfall shocks and explicitly consider their spatial dimension (local/regional). We find that particularly negative...

Constraints on land and water resources, growth in population, and an apparent slowdown in agricultural productivity raise concerns that food prices may rise substantially in the coming decades. A key question is whether policies aimed at increasing agricultural productivity may be effective in...