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An econometric analysis of demand for food quantity and quality in urban China

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  • Vardges Hovhannisyan
  • Sachintha Mendis
  • Chris Bastian

Abstract

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.

Suggested Citation

  • Vardges Hovhannisyan & Sachintha Mendis & Chris Bastian, 2019. "An econometric analysis of demand for food quantity and quality in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 3-13, January.
    • Handle: RePEc:bla:agecon:v:50:y:2019:i:1:p:3-13
    DOI: 10.1111/agec.12461
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    References listed on IDEAS

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    2. Vardges Hovhannisyan & Brian W. Gould, 2014. "Structural change in urban Chinese food preferences," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 159-166, March.
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    2. Ghazaryan, Armen & Bonanno, Alessandro & Carlson, Andrea, 2023. "I Say Milk, You Say Mylk. Demand Separability in a Broadened Milk Category," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    3. Vardges Hovhannisyan & Aleksan Shanoyan, 2020. "An Empirical Analysis of the Welfare Consequences of Rising Food Prices in Urban China: The Easi Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 796-814, December.

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