Famine: a simple general equilibrium model

Agents in this model begin each period with an endowment of food, the sole commodity. Their utility is a function of current consumption, which has to exceed a specified minimum. to ensure survival, and their endowment in the following period. There are three markets: those for labour, land, and food; there is no capital market. A famine can be triggered by a loss of endowment which causes the food wage to fall below the survival minimum. The model is employed to compare the effects of public works and food distribution as relief policies and shows the latter to be superior.