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Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data

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Author Info
Cheng Fang
John C. Beghin

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Abstract

Using urban household-level survey data from 1992 to 1998, the authors provide estimates of final demand for edible vegetable oils and animal fats in three regions of China based on the LinQuad incomplete demand system. For each region, the demand for the major "staple" oil is price inelastic. The demand for "condiment" or flavoring oils is more price responsive. All edible oils and fats have positive income elasticity but that which is smaller than one. Using the LinQuad parameter estimates, the authors provide exact measures of urban consumer welfare losses associated with trade restrictions on vegetable oil imports. Consumers suffer a significant welfare loss of the order of $392 million (1998 dollars).

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Publisher Info
Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 00-wp245.

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Date of creation: Aug 2000
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Handle: RePEc:ias:fpaper:00-wp245

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lewis, Philip & Andrews, Neil, 1989. "Household Demand in China," Applied Economics, Taylor and Francis Journals, vol. 21(6), pages 793-807, June.
  2. Peterson, E. Wesley F. & Jin, Lan & Ito, Shoichi, 1991. "An econometric analysis of rice consumption in the People's Republic of China," Agricultural Economics, Blackwell, vol. 6(1), pages 67-78, October. [Downloadable!] (restricted)
  3. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
  4. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
  5. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
  6. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2003. "The Cost of the U.S. Sugar Program Revisited," Contemporary Economic Policy, Oxford University Press, vol. 21(1), pages 106-116, January.
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  1. John C. Beghin & Jean-Christophe Bureau & Sophie Drogue, 2003. "Calibration of Incomplete Demand Systems in Quantitative Analysis, The," Center for Agricultural and Rural Development (CARD) Publications 03-wp324, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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  2. Diop, Ndiame & Beghin, John & Sewadeh, Mirvat, 2004. "Groundnut policies, global trade dynamics, and the impact of trade liberalization," Policy Research Working Paper Series 3226, The World Bank. [Downloadable!]
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  3. Haddad, Lawrence James, 2003. "What can food policy do to redirect the diet transition?," FCND discussion papers 165, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  4. John C. Beghin & Jean-Christophe Bureau & Sophie Drogué, 2004. "Calibration of incomplete demand systems in quantitative analysis," Applied Economics, Taylor and Francis Journals, vol. 36(8), pages 839-847, May. [Downloadable!] (restricted)
  5. Yi Liu & Bhavani Shankar, 2007. "Will rising household incomes solve China's micronutrient deficiency problems?," Economics Bulletin, Economics Bulletin, vol. 15(10), pages 1-14. [Downloadable!]
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