Abstract
Many policies and measures for poverty alleviation have been undertaken by the Chinese government, but few researchers have explored its experience and lessons. This research focuses on household needs like food, clothing, housing, household equipment and supplies, transportation and communication, education and entertainment, healthcare; and also focuses on food items such as grains, meat, eggs, milk, vegetables, fruits and others in urban China. In poor households, the average disposable income per capita is less than or near per capita expenditure; and the Engels coefficient is often over 40%. The data from 1997-2012 in this research is in the provincial level from the Information Website of Development Research Center of the State Council (or “DRCnet”). The authors used the two stage ELES-AIDS (Almost Ideal Demand System) to estimate the price elasticity and expenditure elasticity of the household’s expenditures. According to the results, it is recommended that the government should follow economic law and improves policy efficiency, especially its food policy to alleviate the poverty of low income residents.
Highlights
It is recommended that the government should follow economic law and improves policy efficiency, especially its food policy to alleviate the poverty of low income residents
Thought many researchers focus on household consumption, they just focus on the food security, rarely considering about the policy implication [1]
It is recommended that the government should follow economic law and improve policy efficiency, especially its food policy to alleviate the poverty of low income residents
Summary
After economic reform since 1980s in China, more and more people choose to work and live in city, especially for rural, off-farm job providing opportunity for a great number of the surplus rural labor force; in the meantime, which maybe make poverty transfer from rural to urban. More authors focus on rural poverty, but pay less attention to the low-income group in urban. This paper will use the two stage ELES-AIDS (Almost Ideal Demand System) to estimate the price elasticity and expenditure elasticity including food, clothing, housing, family equipment, communication and transformation, education, health care, and others etc. It is recommended that the government should follow economic law and improve policy efficiency, especially its food policy to alleviate the poverty of low income residents. The frame of the paper is arranged in the following: except for the introduction, the part is Data and its expression, A Two-Stage ELES-AIDS Model, results, conclusions and policy implication
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