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The Structure Of Food Demand In Urban China: A Demand System Approach

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  • Gould, Brian W.
  • Sabates, Ricardo

Abstract

The structure of Chinese food demand is examined using a non-homothetic translog indirect utility function. This analysis uses household level survey data for 3 urban Chinese provinces over the 1995-1997 period. We improve upon previous studies by incorporating theoretically consistent equivalence scales to account for differences in household size and composition. These scales allow us to quantify the impact of alternative types of household members on food expenditures. Similar to previous research we find little evidence of purchase economies with the addition of members although, depending on age, we find statistically significant differences in equivalence values across household member age grouping.

Suggested Citation

  • Gould, Brian W. & Sabates, Ricardo, 2001. "The Structure Of Food Demand In Urban China: A Demand System Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20778, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20778
    DOI: 10.22004/ag.econ.20778
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    References listed on IDEAS

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    1. Wang, Zhi & Chern, Wen S., 1992. "Effects of rationing on the consumption behavior of Chinese urban households during 1981-1987," Journal of Comparative Economics, Elsevier, vol. 16(1), pages 1-26, March.
    2. Justo Manrique & Helen H. Jensen, 1998. "Working Women and Expenditures on Food Away‐From‐Home and At‐Home in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 321-333, September.
    3. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-744, August.
    4. X.M. Gao & Eric J. Wailes & Gail L. Cramer, 1996. "A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 604-613.
    5. Lewbel, Arthur, 1989. "Household equivalence scales and welfare comparisons," Journal of Public Economics, Elsevier, vol. 39(3), pages 377-391, August.
    6. Frank Fuller & Dermot Hayes & Darnell Smith, 2000. "Reconciling Chinese Meat Production and Consumption Data," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 23-44.
    7. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
    8. Lazear, Edward P & Michael, Robert T, 1980. "Family Size and the Distribution of Real Per Capita Income," American Economic Review, American Economic Association, vol. 70(1), pages 91-107, March.
    9. Shelley Phipps & Thesia I. Garner, 1994. "Are Equivalence Scales The Same For The United States And Canada?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 1-17, March.
    10. Diansheng Dong & Brian W. Gould, 2000. "Quality versus quantity in Mexican household poultry and pork purchases," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 333-355.
    11. Colby, Hunter & Diao, Xinshen & Tuan, Francis, 2001. "China's WTO accession," TMD discussion papers 68, International Food Policy Research Institute (IFPRI).
    12. Blaylock, James R., 1991. "The Impact Of Equivalence Scales On The Analysis Of Income And Food Spending Distributions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-10, July.
    13. Shelley A. Phipps, 1998. "What Is The Income "Cost Of A Child"? Exact Equivalence Scales For Canadian Two-Parent Families," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 157-164, February.
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    Cited by:

    1. Hengyun Ma & Jikun Huang & Frank Fuller & Scott Rozelle, 2006. "Getting Rich and Eating Out: Consumption of Food Away from Home in Urban China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 101-119, March.

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    Keywords

    Demand and Price Analysis;

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