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A Two‐Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China
Author(s) -
Gao X.M.,
Wailes Eric J.,
Cramer Gail L.
Publication year - 1996
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243278
Subject(s) - microdata (statistics) , china , economics , agricultural economics , commodity , consumer demand , consumption (sociology) , clothing , household income , microeconomics , geography , market economy , population , demography , archaeology , sociology , census , social science
In this paper we evaluate economic and demographic effects on China's rural household demand for nine food commodities: vegetables, pork, beef and lamb, poultry, eggs, fish, sugar, fruit, and grain; and five nonfood commodity groups: clothing, fuel, stimulants, housing, and durables. A two‐stage budgeting allocation procedure is used to obtain an empirically tractable amalgamative demand system for food commodities which combine an upper‐level AIDS model and a lower‐level GLES as a modeling framework. The results indicate that the slow growth of food consumption in China during the latter half of the 1980s is a result of income stagnation rather than consumption saturation. Growth in the demand for better food and shelter by Chinese rural households will continue to be a major concern.