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A Dynamic Analysis of Food Demand Patterns in Urban China

Author

Listed:
  • Liao, Hui
  • Chern, Wen S.

Abstract

Previous researchers have encountered difficulties in rationalizing the extremely high expenditure elasticities estimated for grain demanded by urban Chinese households. The high grain expenditure elasticities, which usually translate into high income elasticities, are doubtful for making a long-term prediction of grain demand in China. Unlike most previous studies using only statistic models, this study employs a dynamic Almost Ideal Demand System (DAIDS) incorporating demographic variables to explore the impact of habit effects as well as demographic impacts on household level food demand pattern in urban China. Most dynamic elements and demographic variables are found significant. The theoretical demand properties cannot be rejected in the DAIDS model while they are frequently rejected for static models. The dynamic AIDS model clearly provides improvement in estimating food demand elasticities as compared with their static counterparts.

Suggested Citation

  • Liao, Hui & Chern, Wen S., 2007. "A Dynamic Analysis of Food Demand Patterns in Urban China," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9770, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9770
    DOI: 10.22004/ag.econ.9770
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    Cited by:

    1. Burggraf, Christine & Kuhn, Lena & Zhao, Quiran & Teuber, Ramona & Glauben, Thomas, 2015. "Nutrition transition in two emerging countries: A comparison between China and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211375, International Association of Agricultural Economists.
    2. Mark D. Agee, 2020. "Classroom management, persistent bullying, and teacher practices in a discrete choice model of habit formation," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 4(1), pages 5-16, December.
    3. Osei-Asare, Yaw Bonsu & Eghan, Mark, 2013. "Food Price Inflation And Consumer Welfare In Ghana," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(1), pages 1-13, July.
    4. Burggraf, Christine & Kuhn, Lena & Zhao, Qiran & Glauben, Thomas & Teuber, Ramona, 2014. "Economic growth and nutrition transition: an empirical study comparing demand elasticities for foods in China and Russia," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182828, European Association of Agricultural Economists.
    5. He, Dehua & Chidmi, Benaissa & Zhou, Deyi, 2011. "Analyzing the Impact of Food Safety Information on Food Demand in China," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103618, Agricultural and Applied Economics Association.
    6. Wisdom Akpalu & Michael Adu Okyere, 2023. "Fish Protein Transition in a Coastal Developing Country," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(3), pages 825-843, March.
    7. Burggraf, Christine & Kuhn, Lena & Zhao, Qi-ran & Teuber, Ramona & Glauben, Thomas, 2015. "Economic growth and nutrition transition: An empirical analysis comparing demand elasticities for foods in China and Russia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(6), pages 1008-1022.

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