Effects of rationing on the consumption behavior of Chinese urban households during 1981–1987

Zhi, Wang; Chern, Wen S.

doi:10.1016/0147-5967(92)90114-m

Cited by 99 publications

(34 citation statements)

References 12 publications

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“…Lifting grain and vegetable oil rationing likely reduced demand for nonstaple foods, such as meats, in urban areas, because a larger share of food expenditures was directed toward staple foods. 5 Although price controls were reinstated in some cities as a consequence of rapid inflation in 1993 and 1994, price subsidies reduced urban food expenditures by less than 5% in 1996. 6 Second, the sharp rise in the general price level in 1993 and 1994 slowed growth in the purchasing power of Chinese consumers and dampened meat consumption, particularly red meat consumption.…”

Section: A Comparison Of Survey and Aggregate Datamentioning

confidence: 99%

Reconciling Chinese Meat Production and Consumption Data

Fuller

Hayes

Smith

2000

Economic Development and Cultural Change

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Section: A Comparison Of Survey and Aggregate Datamentioning

confidence: 99%

Reconciling Chinese Meat Production and Consumption Data

Fuller

Hayes

Smith

2000

Economic Development and Cultural Change

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“…Deaton (1981) presented a technique for generating rationed from nonrationed demands and applied it to extended versions of the Linear Expenditure System (LES) and the Almost Ideal Demand System (AIDS). Wang and Chern (1992) used this method to estimate a complete demand system for China, incorporating rationing. Bettendorf and Barten (1995) refined the virtual prices approach and applied Neary and Robert's (1980) model for rent controls.…”

Section: Rationing and Economic Transitionmentioning

confidence: 99%

Empirical tests of impacts of rationing: the case of Poland in transition

Huffman

Johnson

2004

Economic Systems

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This study tests the theory of rationing, examining changes in household consumption behavior during the transition to a market economy in Poland, 1987-92. Using pre-reform data from the Polish Household Budget Survey, Huffman and Johnson develop a model of consumption under rationing and derive virtual prices for food and housing. A pre-reform Almost Ideal Demand System (AIDS) model with rationing is then used to estimate plausible values for price and income elasticities. Comparing pre-reform and post-reform (without rationing) AIDS models shows that own-price elasticities for nonrational goods are larger after the reform, and there is increased complementarity and decreased substitutability for nonrationed goods. This comparison also shows a 75 percent decline in real household welfare over the transition to a market economy. Keywords AbstractThis study tests the theory of rationing, examining changes in household consumption behavior during the transition to a market economy in Poland, 1987-92 there is increased complementarity and decreased substitutability for the nonrationed goods. The results for Poland show a 75 percent decline in real household welfare over the transition and this welfare loss is one-third the value obtained using reported prices.

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“…Deaton (1981) presented a technique for generating rationed from nonrationed demands and applied them to an extended version of the Linear Expenditure System (LES) and the Almost Ideal Demand System (AIDS). Deaton's (1981) approach was applied by Wang and Chern (1992) to estimate a complete demand system under rationing for China. Recent work of Hausman (1997) on valuation of new goods estimates the preferences and then uses them to back out the virtual prices.…”

Section: Demand System Under Rationing: Estimationmentioning

confidence: 99%

Re-evaluation of Welfare Changes during the Transition in Poland

Huffman¹,

Johnson²

2002

Post-Communist Economies

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The costs of shortages and rationing are not captured by standard consumer price indices. Thus the change in real gross domestic product (GDP) per capita is an overestimate of welfare losses in transition economies. In this study the authors use virtual prices to calculate new cost-of-living indices, making it possible to construct more accurate pre-and post-reform welfare comparisons. The results for Poland using virtual prices show a 62 to 84 percent decline in welfare over the transition period of 1987 to 1992. This welfare loss is approximately one-third the value obtained using actual prices.

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Effects of rationing on the consumption behavior of Chinese urban households during 1981–1987

Cited by 99 publications

References 12 publications

Reconciling Chinese Meat Production and Consumption Data

Reconciling Chinese Meat Production and Consumption Data

Empirical tests of impacts of rationing: the case of Poland in transition

Re-evaluation of Welfare Changes during the Transition in Poland

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