On Price Endogeneity in the Analysis of Food Demand in China

Vardges Hovhannisyan and Marin Bozic

No 159771, Staff Papers from University of Minnesota, Department of Applied Economics

Abstract: Price endogeneity has been ignored in previous analyses of food demand in China. We exploit farm price data collected from the China National Bureau of Statistics to account for price endogeneity using reduced form price equations. Applying our unique econometric approach to the analysis of provincial-level food demand in China, we find strong statistical evidence of price endogeneity. Models that ignore price endogeneity result in substantial upward biased estimates of future food demand in China.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 34
Date: 2013-11
New Economics Papers: this item is included in nep-agr and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:umaesp:159771

DOI: 10.22004/ag.econ.159771

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