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On Price Endogeneity in the Analysis of Food Demand in China

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  • Hovhannisyan, Vardges
  • Bozic, Marin

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.

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  • Hovhannisyan, Vardges & Bozic, Marin, 2013. "On Price Endogeneity in the Analysis of Food Demand in China," Staff Papers 159771, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:159771
    DOI: 10.22004/ag.econ.159771
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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods;
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