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A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China

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  • X.M. Gao
  • Eric J. Wailes
  • Gail L. Cramer

Abstract

In this paper we evaluate economic and demographic effects on China's rural household demand for nine food commodities: vegetables, pork, beef and lamb, poultry, eggs, fish, sugar, fruit, and grain; and five nonfood commodity groups: clothing, fuel, stimulants, housing, and durables. A two-stage budgeting allocation procedure is used to obtain an empirically tractable amalgamative demand system for food commodities which combine an upper-level AIDS model and a lower-level GLES as a modeling framework. The results indicate that the slow growth of food consumption in China during the latter half of the 1980s is a result of income stagnation rather than consumption saturation. Growth in the demand for better food and shelter by Chinese rural households will continue to be a major concern. Copyright 1996, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 78 (1996)
Issue (Month): 3 ()
Pages: 604-613

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Handle: RePEc:oup:ajagec:v:78:y:1996:i:3:p:604-613

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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), December.
  2. Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.
  3. Gould, Brian W. & Dong, Diansheng, 2004. "Product Quality And The Demand For Food: The Case Of Urban China," 2004 Annual meeting, August 1-4, Denver, CO 20010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Hengyun Ma & Allan Rae & Jikun Huang & Scott Rozelle, 2004. "Chinese animal product consumption in the 1990s," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), pages 569-590, December.
  5. Gould, Brian W. & Sabates, Ricardo, 2001. "The Structure Of Food Demand In Urban China: A Demand System Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20778, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Haripriya Gundimeda & Gunnar Köhlin, 2006. "Fuel Demand Elasticities for Energy and Environmental Policies Indian Sample Survey Evidence," Energy Working Papers 22501, East Asian Bureau of Economic Research.
  7. Cheng Fang & John C. Beghin, 2000. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Food and Agricultural Policy Research Institute (FAPRI) Publications 00-wp245, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  8. Ecker, Olivier & Qaim, Matin, 2010. "Analyzing nutritional impacts of policies," IFPRI discussion papers 1017, International Food Policy Research Institute (IFPRI).
  9. Debnath, Biswajit & Biradar, R.S. & Ananthan, P.S. & Pandey, S.K., 2012. "Estimation of Demand for Different Fish Groups in Tripura," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).
  10. Aguero, Jorge M. & Gould, Brian W., 2003. "A Household Level Analysis of Food Expenditure Patterns in Urban China: 1995-2000," Discussion Papers 37598, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
  11. Berkhout, Peter H. G. & Ferrer-i-Carbonell, Ada & Muskens, Jos C., 2004. "The ex post impact of an energy tax on household energy demand," Energy Economics, Elsevier, vol. 26(3), pages 297-317, May.
  12. Wang, Qingbin & Fuller, Frank H. & Hayes, Dermot J. & Halbrendt, Catherine K., 1998. "Chinese Consumer Demand For Animal Products And Implications For U.S. Pork And Poultry Exports," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
  13. Islam, S.M. Fakhrul & Jabbar, Mohammad A., 2010. "Consumer preferences and demand for livestock products in urban Bangladesh," Research Reports 97972, International Livestock Research Institute.
  14. Gundimeda, Haripriya & Kohlin, Gunnar, 2008. "Fuel demand elasticities for energy and environmental policies: Indian sample survey evidence," Energy Economics, Elsevier, vol. 30(2), pages 517-546, March.
  15. Zhao, Jing & Thompson, Wyatt, 2013. "The Effect of Refrigerator Use on Meat Consumption in Rural China," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142931, Southern Agricultural Economics Association.
  16. Ma, Hengyun & Huang, Jikun & Rozelle, Scott & Rae, Allan N., 2003. "Livestock Product Consumption Patterns In Urban And Rural China," China Agriculture Project Working Papers 23689, Massey University, Centre for Applied Economics and Policy Studies.
  17. Tey, (John) Yeong-Sheng, 2008. "Household expenditure on food at home in Malaysia," MPRA Paper 15031, University Library of Munich, Germany.
  18. Yen, Steven T. & Fang, Cheng & Su, Shew-Jiuan, 2004. "Household food demand in urban China: a censored system approach," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 564-585, September.

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