2021
DOI: 10.1108/caer-07-2020-0170
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The evolution of habit formation effect on sugar consumption of urban residents in China

Abstract: PurposeThe purpose of this study is to explain the rapid growth of urban residents' sugar consumption in China from the perspective of habit formation.Design/methodology/approachUsing the provincial panel data of Chinese urban households from 1995 to 2012, this study uses the two-step System Generalized Moment Method (GMM) to test the habit formation effect on residents' sugar expenditure in urban China. We also use system GMM and the recursive estimated method to explore the changes of the habit formation coe… Show more

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Cited by 7 publications
(8 citation statements)
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“…As the pseudopanel data used here are obtained by averaging observations in the same group, there may be uncontrollable nonobservational heterogeneity. According to Heien and Durham (1991) and Zhai et al (2021), this is similar to the use of aggregate data, which will lead to slightly larger estimated habit formation coefficients.…”
Section: Habit Formation Effect In the Consumption Of Main Protein So...mentioning
confidence: 77%
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“…As the pseudopanel data used here are obtained by averaging observations in the same group, there may be uncontrollable nonobservational heterogeneity. According to Heien and Durham (1991) and Zhai et al (2021), this is similar to the use of aggregate data, which will lead to slightly larger estimated habit formation coefficients.…”
Section: Habit Formation Effect In the Consumption Of Main Protein So...mentioning
confidence: 77%
“…As the expected wealth is usually unavailable, most of the literature uses indicators such as per capita disposable income, household net income, and household actual total property to replace it. We refer to the practice of Zhai et al (2021) and use household per capita disposable income as a proxy variable for expected wealth. To control data fluctuations and eliminate the impact of unit inconsistencies, data such as consumption expenditure and per capita disposable income are logarithmized, and the empirical model finally adopted is as follows: Lnnormalcit=αi0+αi1Lnnormalyit+αi2Lnnormalcit1+αi3Znormali+αi4σit+εit.…”
Section: Theoretical Framework and Estimation Methodsmentioning
confidence: 99%
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