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A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China

  • X.M. Gao
  • Eric J. Wailes
  • Gail L. Cramer

In this paper we evaluate economic and demographic effects on China's rural household demand for nine food commodities: vegetables, pork, beef and lamb, poultry, eggs, fish, sugar, fruit, and grain; and five nonfood commodity groups: clothing, fuel, stimulants, housing, and durables. A two-stage budgeting allocation procedure is used to obtain an empirically tractable amalgamative demand system for food commodities which combine an upper-level AIDS model and a lower-level GLES as a modeling framework. The results indicate that the slow growth of food consumption in China during the latter half of the 1980s is a result of income stagnation rather than consumption saturation. Growth in the demand for better food and shelter by Chinese rural households will continue to be a major concern. Copyright 1996, Oxford University Press.

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File URL: http://hdl.handle.net/10.2307/1243278
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Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 78 (1996)
Issue (Month): 3 ()
Pages: 604-613

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Handle: RePEc:oup:ajagec:v:78:y:1996:i:3:p:604-613
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