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Aggregate Food Demand Analysis For A Transitional Economy: An Application To Chinese Household Expenditure Data

Author

Listed:
  • Shi, Hongqi
  • Mittelhammer, Ronald C.
  • Wahl, Thomas I.

Abstract

An analytical framework to assess the effects of changing income and socio-demographic distributions on aggregate food demand functions in transitional economies is presented. Ignoring such distributional effects can lead to biased estimates of aggregate demand elasticities. The proposed method is applied to Chinese urban household expenditure survey data. The results indicate that the drastic distributional changes that have occurred in China have had notable effects on estimated demand elasticities for both food and non-food commodity groups.

Suggested Citation

  • Shi, Hongqi & Mittelhammer, Ronald C. & Wahl, Thomas I., 1995. "Aggregate Food Demand Analysis For A Transitional Economy: An Application To Chinese Household Expenditure Data," Journal of Food Distribution Research, Food Distribution Research Society, vol. 26(1), pages 1-8, September.
    • Handle: RePEc:ags:jlofdr:27232
    DOI: 10.22004/ag.econ.27232
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    References listed on IDEAS

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    1. James G. MacKinnon & Russell Davidson, 1999. "Artificial Regressions," Working Paper 978, Economics Department, Queen's University.
    2. Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
    3. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    4. Chern, Wen S. & Wang, Guijing, 1994. "The Engel function and complete food demand system for Chinese urban households," China Economic Review, Elsevier, vol. 5(1), pages 35-57.
    5. MacKinnon, James G, 1992. "Model Specification Tests and Artificial Regressions," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 102-146, March.
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    Cited by:

    1. Liu, Hongbo & Parton, Kevin A. & Zhou, Zhang-Yue & Cox, Rod, 2009. "At-home meat consumption in China: an empirical study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-17.
    2. Hongbo Liu & Kevin A. Parton & Zhang-Yue Zhou & Rod Cox, 2009. "At-home meat consumption in China: an empirical study ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 485-501, October.

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