A Two‐Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China

10 Pages Posted: 24 Mar 2020

See all articles by X.M. Gao

X.M. Gao

affiliation not provided to SSRN

Eric J. Wailes

University of Arkansas - Department of Agricultural Economics & Agribusiness

Gail L. Cramer

Louisiana State University, Baton Rouge - Department of Agricultural Economics and Agribusiness

Date Written: August 1996

Abstract

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.

Keywords: China, demand, food, household, two‐stage budgeting, O130, O150, Q110

Suggested Citation

Gao, X.M. and Wailes, Eric J. and Cramer, Gail L., A Two‐Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China (August 1996). American Journal of Agricultural Economics, Vol. 78, Issue 3, pp. 604-613, 1996, Available at SSRN: https://ssrn.com/abstract=3558985 or http://dx.doi.org/10.2307/1243278

X.M. Gao (Contact Author)

affiliation not provided to SSRN

No Address Available

Eric J. Wailes

University of Arkansas - Department of Agricultural Economics & Agribusiness ( email )

Fayetteville, AR 72701
United States
39-6-5705-6894 (Phone)
39-6-5705-4495 (Fax)

Gail L. Cramer

Louisiana State University, Baton Rouge - Department of Agricultural Economics and Agribusiness ( email )

101 Agricultural Administration Building
Baton Rouge, LA 70803-5604

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