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

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Author Info
Fang, Cheng
Beghin, John C.

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Abstract

Using urban household-level survey data from 1992 to 1998, we provide estimates of final demand for edible vetgetable 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 smaller than one. Using the LinQuad parameter estimates, we 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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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1863.

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Date of creation: 21 Aug 2000
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Publication status: Published in Journal of Comparative Economics, August 2002, Vol. 30, No. 4, pp. 732-53.
Handle: RePEc:isu:genres:1863

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Keywords: China vegetable oil consumption urban household;

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D1 - Microeconomics - - Household Behavior

References listed on IDEAS
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. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2001. "Cost of the U.S. Sugar Program Revisited, The," Center for Agricultural and Rural Development (CARD) Publications 01-wp273, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  3. Lafrance, Jeffrey T., 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 34(02), August. [Downloadable!]
  4. 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)
  5. 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)
  6. 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.
  7. 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.
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(explanations, 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. 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!]
    Other versions:
  2. Liu, Kang Ernest & Chang, Hung-Hao & Chern, Wen S., 2008. "Changes in Fruit and Vegetable Consumption over Time and across Regions in China: A Difference-in-Differences Analysis with Quantile Regression," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6531, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Fabiosa, Jacinto & Jensen, Helen & Yan, Dong, 2005. "Household Welfare Cost of the Indonesian Macroeconomic Crisis," 2005 Annual meeting, July 24-27, Providence, RI 19311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Shimokawa, Satoru & Pinstrup-Andersen, Per, 2006. "Economic Growth, Lifestyle Changes, and the Coexistence of Under and Overweight in China: A Semiparametric Approach," 2006 Annual meeting, July 23-26, Long Beach, CA 21334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Beghin, John C. & Bureau, Jean-Christophe & Drogue, Sophie, 2003. "The Calibration Of Incomplete Demand Systems In Quantitative Analysis," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25820, International Association of Agricultural Economists. [Downloadable!]
  6. 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!]
    Other versions:
  7. Dai, Yingchun & Tuan, Francis & Lin, William & Zhong, Funing & Chen, Xi, 2006. "How does Biotech Labeling Affect Consumers' Purchasing Behavior? A Case Study of Vegetable Oils in Nanjing, China," 2006 Annual meeting, July 23-26, Long Beach, CA 21235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. 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!]
    Other versions:
  9. 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)
  10. Shimokawa, Satoru & Pinstrup-Andersen, Per, 2006. "Economic Growth, Lifestyle Changes, and the Coexistence of Under and Overweight in China: A Semiparametric Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25518, International Association of Agricultural Economists. [Downloadable!]
  11. Pan, Suwen & Mohanty, Samarendu & Welch, Mark, 2008. "India Edible Oil Consumption: A Censored Incomplete Demand Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(03), December. [Downloadable!]
  12. 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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