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Predicting Expenditure Patterns across provinces in China based on AIDADS demand system

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  • He, Jianwu
  • Li, Shantong

Abstract

There are so many studies analyzing expenditure behavior with international cross-section data. However, there are few literatures involving demand analysis using data across provinces in one single country. On one hand, China is a fast-growing developing country and its composition of consumer demand is changing rapidly. On the other hand, China is one of the world's largest countries, including more than 30 provinces, and there exists significant income inequality between different regions. Per capita income of urban households in richest province is more than ten times of that of rural households in poorest province. Therefore, it’s particularly import to study demand patterns across provinces in China. In this study, an AIDADS demand system is constructed based on household survey data from different provinces. Then income elasticity and price elasticity are calculated for different provinces and the trendy of provincial expenditure pattern is predicted. All these results will be useful for analyzing regional effect of policies.

Suggested Citation

  • He, Jianwu & Li, Shantong, 2010. "Predicting Expenditure Patterns across provinces in China based on AIDADS demand system," Conference papers 332004, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332004
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    References listed on IDEAS

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