Price elasticities of key agricultural commodities in China

Zhuang, Renan; Abbott, Philip C.

doi:10.1016/j.chieco.2006.02.006

Cited by 32 publications

(20 citation statements)

References 18 publications

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“…This implies that, despite the complex changes in the Chinese food structure, migration of rural population to urban China on a massive scale from early 1990s onward might have contributed to other grains becoming a normal good in urban areas. Zhuang and Abbott (2007) used a broader geographic coverage over 1978–2001, and reported an income elasticity of rice (0.34) that is close to the respective measure in our study in 2003 (0.4), however, they obtained quite inelastic estimates for pork and poultry (0.14, 0.23 vis‐à‐vis our respective measures of 1.14, 1.6 in 2003). While cross study comparisons may be useful, it should be borne in mind that the types of data and methodologies vary vastly from one application to another.…”

Section: Econometric Analysis Of Pre‐committed Food Demandsupporting

confidence: 71%

Quantifying the structure of food demand in China: An econometric approach

Hovhannisyan

Gould

2011

Agricultural Economics

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This article examines food demand structure and its dynamics for 11 commodities in urban China. The analysis is based on household-level expenditure survey data for two cross-sectional surveys of Chinese households pertaining to food expenditure patterns during 1995 and 2003. Pre-committed components of commodity demands, that are insensitive to economic variables, are explored.We use the generalized quadratic almost ideal demand system (GQAIDS) for its empirical superiority to the generalized almost ideal demand system (GAIDS), and estimate the associated parameters via full information maximum likelihood procedure (FIML) accounting for endogeneity of total expenditures on food for home consumption (FAH). We also use quality-adjusted commodity unit values to control for quality differences resulting from commodity aggregation and food choice. Furthermore, we derive GQAIDS elasticity formulas, and estimate income elasticities without restrictions.The results partially support the hypothesis that an average Chinese household has incorporated elements of Western diet (fine grains) into traditional Chinese food diet over time. Moreover, the outcome of a simple test developed here points to possible preference changes for a majority of food staples under study.JEL classifications: Q11, Q13, Q17

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Section: Econometric Analysis Of Pre‐committed Food Demandsupporting

confidence: 71%

Quantifying the structure of food demand in China: An econometric approach

Hovhannisyan

Gould

2011

Agricultural Economics

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“…The price elasticity of supply in this study was assumed to be inelastic (Table 2), which was also reflected in previous research (Griffith et al, 2001;Zhuang and Abbott, 2007). As wheat is the most widely grown arable crop in South East England (0.2 million ha, 20.4% of total farmed area in this region, average from 2010 to 2014) (DEFRA, 2016b, 2016c), farmers would have limited land to increase the percentage of production if wheat price increases (Jansson and Heckelei, 2011).…”

Section: Discussionmentioning

confidence: 76%

Economic valuation of natural pest control of the summer grain aphid in wheat in South East England

et al. 2018

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Wheat (Triticum spp.) is the most important arable crop grown in the UK, and the grain aphid (Sitobion avenae) is one of the key pests of this crop. Natural enemies could help suppress grain aphid and reduce unnecessary insecticide inputs, but few studies have estimated the economic value of natural pest control in this crop-pest system, which could help inform effective integrated pest management strategies. Based on a natural enemy exclusion experiment carried out in South East England, this study used an economic surplus model to estimate the value of predators and parasitoids to control summer grain aphid in wheat in this region. Incorporating three levels of spray intensity and three levels of pest infestation, the annual economic value of natural pest control service was conservatively estimated to be £0-2.3 Million. Under the medium pest infestation level, a 10% increase in the proportion of wheat fields using economic threshold-based spray method would increase this value by 23% (£0.4 Million). 71% of the value would benefit wheat growers. A potential rise in insecticide costs due to resistance development would also enhance the value of natural pest control. These findings support growing efforts from policy-makers to promote this ecosystem service in agriculture.

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“…Researchers who examine the consumption structure in rural China focus primarily on the structure of household food consumption (Yen et al ; Gould and Villarreal ; Zhuang and Abbott ; Zheng and Henneberry ). These studies are based on field survey data obtained before 2005 and are often from different sources, which may lead to differences in estimates on price and income elasticity.…”

Section: Introductionmentioning

confidence: 99%

“…A critical requirement to accurately estimate the QUAIDS model is the selection of appropriate variables. Given data limitations, a common practice in empirical work is to treat household consumption expenditure and price as two predominant factors in the analysis of rural families’ food consumption structure (Zhuang and Abbott ; Huang et al ). Some scholars have extended the scope by considering other influencing factors, such as household size, income, number of children of different ages, number of elderly members, age, and educational attainment of household heads, as well as regional dummy variables (Ma et al ; Liu and Zhong ; Yu et al ; Zheng et al ; Hovhannisyan et al ).…”

Section: Introductionmentioning

confidence: 99%

Household Consumption Distribution in Rural China: A Consistent Two‐Step Estimation

Tan

Zhang

Wen

et al. 2016

Canadian J Agri Economics

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As China continues to experience rapid urbanization, understanding the distribution of rural household consumption presents important policy implications. We take a sample of 15,606 households from the National Rural Fixed Observation Point Survey conducted by China's Ministry of Agriculture in 2010. A consistent two-step estimation based on the quadratic almost ideal demand system model is used to assess the distribution of living expenses across eight categories of goods and services. Results show that the price elasticity of food, clothing, and transportation and communication is relatively low, whereas that of durable goods, fuel, health and medicine, culture and education, and others is high. Demographic and regional variables also considerably affect living expenses. Our conclusions can serve as significant reference for evaluating changes in consumption structure and farmers' welfare during the course of modernization in China. This type of analysis may also be conducted in other developing countries in general.En raison de la forte accélération de l'urbanisation en Chine, une meilleure compréhension de la distribution des dépenses de consommation des ménages ruraux permettra d'élaborer de meilleures politiques. Dans la présenteétude, nous avons constitué unéchantillon de 15 606 ménagesà partir de l'enquête National rural Fixed Observation Point réalisée par le ministère de l'Agriculture de la Chine en 2010. Nous avons appliqué une méthode d'estimation en deuxétapes, fondée sur le modèle QUAIDS (système de demande presque parfait quadratique), pourévaluer la distribution des frais de subsistance dans huit catégories de biens et services. Les résultats de notreétude ont montré que l'élasticité-prix des aliments, de l'habillement, du transport et des communications est relativement faible, tandis que celle des biens durables, du carburant, des soins de santé et des médicaments, de la culture et de l'éducation, entre autres, estélevée. Les variables démographiques et régionales ont egalement un impact considérable sur le niveau des dépenses. Les conclusions de notreétude peuvent servir de référence pourévaluer les changements qui touchent la structure de la consommation et le bien-être des agriculteurs durant la modernisation de la Chine. Ce genre d'analyse peutégalementêtre appliquéà d'autres pays en développement.

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Price elasticities of key agricultural commodities in China

Cited by 32 publications

References 18 publications

Quantifying the structure of food demand in China: An econometric approach

Quantifying the structure of food demand in China: An econometric approach

Economic valuation of natural pest control of the summer grain aphid in wheat in South East England

Household Consumption Distribution in Rural China: A Consistent Two‐Step Estimation

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