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The Demand for Food Quality in Rural China

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Author Info

  • Xiaohua Yu
  • David Abler

Abstract

Many studies of food demand do not use actual prices but unit values, obtained by dividing expenditures by the quantity consumed. This can bias empirical analyses because unit values are not exogenous market prices; they reflect household food quality choices within each food category. This article develops a framework for assessing the resulting bias in income and price elasticities of demand and applies the framework to data for rural China. Empirical results indicate that households in rural China tend to consume higher-quality food as income increases, with a greater sensitivity to income for basic foods than for luxury foods. Copyright 2009, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2008.01159.x
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Bibliographic Info

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

Volume (Year): 91 (2009)
Issue (Month): 1 ()
Pages: 57-69

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Handle: RePEc:oup:ajagec:v:91:y:2009:i:1:p:57-69

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Citations

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Cited by:
  1. Zhigang Li & Xiaohua Yu & Yinchu Zeng & Rainer Holst, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 112, Courant Research Centre PEG.
  2. Xiaohua Yu & Guoqing Zhao, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Springer, vol. 4(4), pages 633-648, December.
  3. 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.
  4. Liu, Yuanyuan & Zeng, Yinchu & Yu, Xiaohua, 2009. "Consumer Willingness to Pay for Food Safety in Beijing: A Case Study of Food Additives," 2009 Conference, August 16-22, 2009, Beijing, China 51234, International Association of Agricultural Economists.
  5. Matthias Staudigel, 2012. "How do obese people afford to be obese? Consumption strategies of Russian households," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 701-714, November.
  6. Konstantin M. Wacker, 2011. "Do multinationals beat down developing countries' export prices? The impact of FDI on net barter terms of trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 211, Ibero-America Institute for Economic Research.
  7. Vandeplas, Anneleen & Minten, Bart, 2011. "Food quality in domestic markets of developing economies: A comparative study of two countries," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/319562, Katholieke Universiteit Leuven.
  8. Staudigel, Matthias, 2010. "The Demand For Food Quality In Russia And Its Linkage To Obesity," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116444, European Association of Agricultural Economists.
  9. Meng, Ting & Florkowski, Wojciech J. & Kolavalli, Shashidhara & Ibrahim, Mohammed, 2012. "Food Expenditures and Income in Rural Households in the Northern Region of Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124638, Agricultural and Applied Economics Association.
  10. Tian, Xu & Yu, Xiaohua & Holst, Rainer, 2011. "Applying the payment card approach to estimate the WTP for green food in China," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 23, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  11. Xiaohua Yu & David Abler, 2010. "Interactions between cigarette and alcohol consumption in rural China," The European Journal of Health Economics, Springer, vol. 11(2), pages 151-160, April.

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