Research of Chinese Residents' Meat Consumption based on double logarithmic linear expenditure model and the LA/AIDS model

Abstract

The double logarithmic model and the LA/AIDS model are both classic econometric models. The double logarithmic model is often used for elasticity analysis in many fields of economics, and the LA/ AIDS model has a very wide range of applications in food consumption related fields. Based on the analysis and comparison of the changing characteristics of the meat consumption of Chinese urban and rural residents in the past 30 years, this study used the double logarithmic linear expenditure model and the LA/AIDS model to analyze the impact of income, price, etc. on the meat consumption of urban and rural residents. The main conclusions of the study are drawn: the sensitivity of meat consumption of rural residents to changes in income is significantly higher than that of urban residents. With the growth of consumption expenditures, urban residents and rural residents have the most obvious growth in poultry consumption. Urban residents' consumption expenditures for pork are more elastic than beef and mutton, but rural residents' consumption expenditures for beef and mutton are more elastic than pork. From the perspective of the cross-price elasticity of pork, beef, mutton and poultry, urban residents' consumption substitution among meats caused by price changes is very obvious, but rural residents are not. The conclusions would provide valuable reference for studying and judging the trend of Chinese meat consumption changes.