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China's Rural Household Demand for Fruit and Vegetables

Published online by Cambridge University Press:  28 April 2015

Tong Han  and
Thomas I. Wahl
Tong Han
Affiliation:
Department of Agricultural Economics, Washington State University
Thomas I. Wahl
Affiliation:
Department of Agricultural Economics, Washington State University
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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.

Keywords

AIDS modelChinese rural householdselasticityhousehold demandLES modeltwo-stage budgeting
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 30 , Issue 1 , July 1998 , pp. 141 - 150
Copyright
Copyright © Southern Agricultural Economics Association 1998

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