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Household own-consumption and grain marketable surplus in China

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  • John Davis
  • Ping Zong

Abstract

This paper explores the interrelationships between Chinese grain prices, farm households' income, their own-consumption of grain and their marketable surplus supply during the rural reform era. A Gorman polar indirect utility function is employed, from which a set of household grain supply and consumption functions are estimated. The integrated modelling approach recognizes the interdependence of household supply and consumption decisions. A set of compensated elasticities are derived to show the effects of grain prices, farm income and full household income on grain consumption and on-farm labour supply. The impact of own-consumption on marketable surplus supply is then gauged by estimating conditional and unconditional price elasticities of marketable surplus supply. The results point to the relatively strong positive effect of off-farm income on household's own-consumption of grain and the negative influence this has had on the marketable surplus of grain in China during the reform era.

Suggested Citation

  • John Davis & Ping Zong, 2002. "Household own-consumption and grain marketable surplus in China," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 969-974.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:969-974
    DOI: 10.1080/00036840110065826
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    References listed on IDEAS

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    1. Tang, Anthony M. & Stone, Bruce, 1980. "Food production in the People's Republic of China:," Research reports 15, International Food Policy Research Institute (IFPRI).
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