Abstract

This study analyzes the structure of food demand in urban China based on the most recent household expenditure survey data. Consumer food preferences are represented by an Exact Affine Stone Index (EASI) demand model, which accounts for unobserved consumer heterogeneity and allows for arbitrary Engel curve shapes. Further, we account for unobserved province-level heterogeneity in food preferences via province fixed-effects. Our findings indicate that seafood, fruit, and vegetables are income and expenditure elastic, while commodities such as grains and eggs are less than unitary elastic.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.