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

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  • Fang, Cheng
  • Beghin, John C.

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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Bibliographic Info

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: 01 Aug 2002
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Publication status: Published in Journal of Comparative Economics, August 2002, vol. 30 no. 4, pp. 732-753
Handle: RePEc:isu:genres:1863

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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References

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Citations

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Cited by:
  1. Bhavani Shankar & Yi Liu, 2007. "Will rising household incomes solve China's micronutrient deficiency problems?," Economics Bulletin, AccessEcon, vol. 15(10), pages 1-14.
  2. Diop, Ndiame & Beghin, John C. & Sewadah, Mirvat, 2005. "Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization," Staff General Research Papers 12231, Iowa State University, Department of Economics.
  3. John Beghin & Jean-Christophe Bureau & Sophie Drogue, 2004. "Calibration of incomplete demand systems in quantitative analysis," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 839-847.
  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, August 12-18, 2006, Queensland, Australia 25518, International Association of Agricultural Economists.
  5. John C. Beghin & Jean-Christophe Bureau & Sophie Drogué, 2003. "The Calibration of Incomplete Demand Systems in Quantitative Analysis," Working Papers 2003/01, INRA, Economie Publique.
  6. 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).
  7. John C. Beghin & Jean-Christophe Bureau & Sophie Drogué, 2003. "Calibration of Incomplete Demand Systems in Quantitative Analysis, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp324, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  8. Dai, Yingchun & Tuan, Francis C. & Lin, William W. & 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).
  9. Haddad, Lawrence James, 2003. "What can food policy do to redirect the diet transition?," FCND briefs 165, International Food Policy Research Institute (IFPRI).
  10. Shankar, Bhavani, 2009. "Fat Chance: Modelling the Socio-Economic Determinants of Dietary Fat Intake in China," 2009 Conference, August 16-22, 2009, Beijing, China 51538, International Association of Agricultural Economists.
  11. repec:ebl:ecbull:v:15:y:2007:i:10:p:1-14 is not listed on IDEAS
  12. Min, Insik & Fang, Cheng & Li, Qi, 2004. "Investigation of patterns in food-away-from-home expenditure for China," China Economic Review, Elsevier, vol. 15(4), pages 457-476.
  13. 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.
  14. Fabiosa, Jacinto F. & Jensen, Helen H. & 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).
  15. Yen, Steven T. & Fang, Cheng & Su, Shew-Jiuan, 2004. "Household food demand in urban China: a censored system approach," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 564-585, September.
  16. 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).

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