IDEAS home Printed from https://ideas.repec.org/p/ags/aaea16/236889.html
   My bibliography  Save this paper

New Evidence On The Structure Of Food Demand In China: An Easi Demand Model Estimated Via Panel Data Techniques

Author

Listed:
  • Hovhannisyan, Vardges

Abstract

This study analyzes the structure of food demand in urban China based on the most recent household expenditure survey data. Consumer food preferences are represented by an Exact Affine Stone Index (EASI) demand model, which accounts for unobserved consumer heterogeneity and allows for arbitrary Engel curve shapes. Further, we account for unobserved province-level heterogeneity in food preferences via province fixed-effects. Our findings indicate that seafood, fruit, and vegetables are income and expenditure elastic, while commodities such as grains and eggs are less than unitary elastic.

Suggested Citation

  • Hovhannisyan, Vardges, 2016. "New Evidence On The Structure Of Food Demand In China: An Easi Demand Model Estimated Via Panel Data Techniques," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236889, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:236889
    DOI: 10.22004/ag.econ.236889
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/236889/files/AAEA_16_China.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.236889?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huang, Jikun & Rozelle, Scott, 1998. "Market development and food demand in rural China," China Economic Review, Elsevier, vol. 9(1), pages 25-45.
    2. Vardges Hovhannisyan & Brian W. Gould, 2014. "Structural change in urban Chinese food preferences," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 159-166, March.
    3. Christopher L. Gilbert, 2010. "How to Understand High Food Prices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 398-425, June.
    4. Vardges Hovhannisyan & Brian W. Gould, 2011. "Quantifying the structure of food demand in China: An econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 1-18, November.
    5. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    6. McElroy, Marjorie B., 1977. "Goodness of fit for seemingly unrelated regressions : Glahn's R2y.x and Hooper's r2," Journal of Econometrics, Elsevier, vol. 6(3), pages 381-387, November.
    7. Fan, Shenggen & Cramer, Gail & Wailes, Eric, 1994. "Food demand in rural China: evidence from rural household survey," Agricultural Economics, Blackwell, vol. 11(1), pages 61-69, September.
    8. Chen Zhen & Eric A. Finkelstein & James M. Nonnemaker & Shawn A. Karns & Jessica E. Todd, 2014. "Predicting the Effects of Sugar-Sweetened Beverage Taxes on Food and Beverage Demand in a Large Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 1-25.
    9. Jeffrey T. LaFrance, 1993. "Weak Separability in Applied Welfare Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 770-775.
    10. Fengxia Dong & Frank Fuller, 2010. "Dietary Structural Change in China's Cities: Empirical Fact or Urban Legend?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 73-91, March.
    11. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-863, June.
    12. Zhang, Wei & Wang, Qingbin, 2003. "Changes In China'S Urban Food Consumption And Implications For Trade," 2003 Annual meeting, July 27-30, Montreal, Canada 21986, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    14. 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, January.
    15. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    16. LaFrance, Jeffrey T., 1991. "When Is Expenditure "Exogenous" In Separable Demand Models?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-14, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vardges Hovhannisyan & Marin Bozic, 2017. "Price Endogeneity and Food Demand in Urban China," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 386-406, June.
    2. Mendis, Sachintha & Hovhannisyan, Vardges, 2017. "Assessing Provincial-Level Demand For Food Quantity And Quality In China: An Easi Demand System Approach," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252797, Southern Agricultural Economics Association.
    3. Hovhannisyan, Vardges & Shanoyan, Aleksan, 2018. "An Empirical Analysis Of Welfare Consequences Of Rising Food Prices In Urban China: The Easi Approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 273987, Agricultural and Applied Economics Association.
    4. Vardges Hovhannisyan & Aleksan Shanoyan, 2020. "An Empirical Analysis of the Welfare Consequences of Rising Food Prices in Urban China: The Easi Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 796-814, December.
    5. Hovhannisyan, Vardges & Bozic, Marin, 2014. "On Price Endogeneity in the Analysis of Food Demand in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169767, Agricultural and Applied Economics Association.
    6. Lichtenberg, Erik & Strand, Ivar E., Jr., 2000. "Joint Adoption Of Multiple Technologies: A Dual, Latent Demand Approach," Working Papers 28566, University of Maryland, Department of Agricultural and Resource Economics.
    7. Vardges Hovhannisyan & Stephen Devadoss, 2020. "Effects of urbanization on food demand in China," Empirical Economics, Springer, vol. 58(2), pages 699-721, February.
    8. Hovhannisyan, Vardges & Bozic, Marin, 2013. "On Price Endogeneity in the Analysis of Food Demand in China," Staff Papers 159771, University of Minnesota, Department of Applied Economics.
    9. repec:ags:usao13:148045 is not listed on IDEAS
    10. Vardges Hovhannisyan & Sachintha Mendis & Chris Bastian, 2019. "An econometric analysis of demand for food quantity and quality in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 3-13, January.
    11. Hovhannisyan, Vardges & Gould, Brian W., 2010. "Quantifying the Structure of Food Demand in China Using a Generalized Quadratic AIDS Specification," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56422, Southern Agricultural Economics Association.
    12. Vardges Hovhannisyan & Brian W. Gould, 2011. "Quantifying the structure of food demand in China: An econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 1-18, November.
    13. Tomoki Fujii, 2014. "Is urban food demand in the Philippines different from China?," Working Papers 18-2014, Singapore Management University, School of Economics.
    14. Hovhannisyan, Vardges & Devadoss, Stephen, 2017. "Effects of Urbanization on Food Demand in China," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258436, Agricultural and Applied Economics Association.
    15. Bopape, Lesiba, 2006. "Heterogeneity of Household Food Expenditure Patterns in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21300, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. 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.
    17. 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.
    18. Jing You, 2014. "Dietary change, nutrient transition and food security in fast-growing China," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 9, pages 204-245, Edward Elgar Publishing.
    19. Ghazaryan, Armen & Bonanno, Alessandro & Carlson, Andrea, 2023. "I Say Milk, You Say Mylk. Demand Separability in a Broadened Milk Category," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    20. Lakkakula, Prithviraj & Schmitz, Andrew & Ripplinger, David, 2016. "U.S. Sweetener Demand Analysis: A QUAIDS Model Application," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-16, September.
    21. Burggraf, Christine & Kuhn, Lena & Zhao, Quiran & Teuber, Ramona & Glauben, Thomas, 2015. "Nutrition transition in two emerging countries: A comparison between China and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211375, International Association of Agricultural Economists.

    More about this item

    Keywords

    Demand and Price Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea16:236889. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.