Premium
An econometric analysis of demand for food quantity and quality in urban China
Author(s) -
Hovhannisyan Vardges,
Mendis Sachintha,
Bastian Chris
Publication year - 2019
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12461
Subject(s) - economics , china , quality (philosophy) , econometric model , econometric analysis , econometrics , engel curve , consumer demand , food quality , preference , microeconomics , price index , geography , food science , philosophy , chemistry , archaeology , epistemology
This article offers an analytical framework for studying consumer demand for food quality based on a theory‐consistent demand model, namely, the Exact Affine Stone Index specification. Importantly, it accounts for unobserved consumer and regional heterogeneity, and allows for arbitrary Engel curves. The empirical value of our framework is illustrated in an econometric analysis of demand for food quality in China. Evaluating possible structural changes in consumer food expenditures in China is of paramount importance, given the ever‐increasing global role of China and the implications of the structural food preference changes for the global food system. The major findings emerging from this study indicate that income is an important determinant of demand for food quality and quantity with the relatively more affluent provinces having a higher affinity for food quality.