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Product Quality And The Demand For Food: The Case Of Urban China

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  • Gould, Brian W.
  • Dong, Diansheng

Abstract

A Quadratic Almost Ideal Demand System is used to examine the structure of food demand for a sample of urban Chinese households. The dual choice of product quality and quantity is accounted for in the econometric model via the inclusion of simultaneously estimated unit-value equations.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20010.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20010

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Keywords: Demand and Price Analysis;

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References

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  1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  2. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-30, June.
  3. Cramer, J S, 1973. "Interaction of Income and Price in Consumer Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 351-63, June.
  4. Brian W. Gould & Hector J. Villarreal, 2006. "An assessment of the current structure of food demand in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 1-16, 01.
  5. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood, 2003. "Quasi- and Simulated-Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 458-478.
  6. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
  7. Diansheng Dong & Brian W. Gould & Harry M. Kaiser, 2004. "Food Demand in Mexico: An Application of the Amemiya-Tobin Approach to the Estimation of a Censored Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1094-1107.
  8. D Moro & P Sckokai, 2000. "Heterogeneous preferences in household food consumption in Italy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(3), pages 305-323, September.
  9. Banks, James & Blundell, Richard & Lewbel, Arthur, 1996. "Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1227-41, September.
  10. Lewbel, Arthur, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 1-18, January.
  11. Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
  12. Hausman, J. A. & Newey, W. K. & Powell, J. L., 1995. "Nonlinear errors in variables Estimation of some Engel curves," Journal of Econometrics, Elsevier, vol. 65(1), pages 205-233, January.
  13. Brian Gould & Hector Villarreal, 2002. "Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1075-1088.
  14. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
  15. Gould, Brian W., 1996. "Factors Affecting U.S. Demand For Reduced-Fat Fluid Milk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
  16. Wang, Zhi, 1997. "China and Taiwan access to the World Trade Organization: implications for U.S. agriculture and trade," Agricultural Economics, Blackwell, vol. 17(2-3), pages 239-264, December.
  17. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-68, June.
  18. Awudu Abdulai, 2002. "Household Demand for Food in Switzerland. A Quadratic Almost Ideal Demand System," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(I), pages 1-18, March.
  19. Heien, Dale & Pompelli, Greg, 1988. "The Demand For Beef Products: Cross-Section Estimation Of Demographic And Economic Effects," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(01), July.
  20. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
  21. Diansheng Dong & Brian W. Gould, 2000. "Quality versus quantity in Mexican household poultry and pork purchases," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 333-355.
  22. X.M. Gao & Eric J. Wailes & Gail L. Cramer, 1996. "A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 604-613.
  23. Myrland, Oystein & Dong, Diansheng & Kaiser, Harry M., 2003. "Price and Quality Effects of Generic Advertising: The Case of Norwegian Salmon," Research Bulletins 122112, Cornell University, Department of Applied Economics and Management.
  24. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  25. Atkinson, A B & Gomulka, J & Stern, N H, 1990. "Spending on Alcohol: Evidence from the Family Expenditure Survey 1970-1983," Economic Journal, Royal Economic Society, vol. 100(402), pages 808-27, September.
  26. Sabates, Ricardo & Gould, Brian W. & Villarreal, Hector J., 2001. "Household composition and food expenditures: a cross-country comparison," Food Policy, Elsevier, vol. 26(6), pages 571-586, December.
  27. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
  28. Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-99, September.
  29. Chizuru Shono & Nobuhiro Suzuki & Harry M. Kaiser, 2000. "Will China's diet follow western diets?," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 271-279.
  30. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
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Cited by:
  1. Frank Fuller & John Beghin & Scott Rozelle, 2007. "Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 459-474, December.
  2. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.

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