China's Rural Household Demand for Fruit and Vegetables

Posted: 4 Sep 1998

See all articles by Tong Han

Tong Han

Washington State University - School of Economic Sciences

Tom Wahl

North Dakota State University

Abstract

A two-stage budgeting LES-LA/AIDS system is used to estimate rural household demand in China with special emphasis on changes in demand for fruit and vegetable commodities across different income groups. The own-price elasticity for food was found to be more elastic than that for clothing, housing, durable goods, and other items. Within the food group, price elasticities range from 1.042 to 0.019. Grain, with an expenditure elasticity of almost unity, is an important staple food for the average rural household. Vegetables are important nonstaple foods relative to fruits. Lower value vegetables are the most price elastic in the vegetable group. Fruits are more price elastic than vegetables, with grapes being the most price elastic. Different income groups share a common demand function.

JEL Classification: Q12

Suggested Citation

Han, Tong and Wahl, Thomas, China's Rural Household Demand for Fruit and Vegetables. Available at SSRN: https://ssrn.com/abstract=95425

Tong Han

Washington State University - School of Economic Sciences

101 Hulbert Hall
Pullman, WA 99164
United States
509-335-5555 (Phone)
509-335-1173 (Fax)

Thomas Wahl (Contact Author)

North Dakota State University ( email )

Fargo, ND 58105
United States
7012319481 (Phone)

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