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

  • Fang, Cheng
  • Beghin, John C.

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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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
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  6. Frank H. Fuller & John C. Beghin & Stephane De Cara & Jacinto F. Fabiosa & Cheng Fang & Holger Matthey, 2001. "China's Accession to the WTO: What Is at Stake for Agricultural Markets?," Center for Agricultural and Rural Development (CARD) Publications 01-wp276, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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  14. Fang, Cheng & Beghin, John C., 2003. "Protection and Comparative Advantage of Chinese Agriculture: Implications for Regional and National Specialization," Staff General Research Papers 10102, Iowa State University, Department of Economics.
  15. Cheng Fang & Eric Wailes & Gail Cramer, 1998. "China's Rural and Urban Household Survey Data: Collection, Availability, and Problems," Center for Agricultural and Rural Development (CARD) Publications 98-wp202, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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