An assessment of the current structure of food demand in urban China

Brian W. Gould and Hector Villarreal

Agricultural Economics, 2006, vol. 34, issue 1, 1-16

Abstract: We evaluate the current structure of food demand in urban China by using household expenditure survey data from five provinces. Two complementary analyses are undertaken. First, an aggregate analysis based on a fractional logit model is used to examine how households allocate food expenditures across the food‐at‐home (FAH) and food‐away‐from‐home (FAFH) categories. This is followed by a disaggregated analysis of how households allocated their FAH expenditures across 12 commodity categories. A Quadratic Almost Ideal Demand System (QUAIDS) is used. We find evidence of significant food purchase substitution and complementarity.

Date: 2006
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