Journal
AGRICULTURAL ECONOMICS
Volume 50, Issue 1, Pages 3-13Publisher
WILEY
DOI: 10.1111/agec.12461
Keywords
Demand for food quality; EASI demand model; Food demand in China
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This article offers an analytical framework for studying consumer demand for food quality based on a theory-consistent demand model, namely, the Exact Affine Stone Index specification. Importantly, it accounts for unobserved consumer and regional heterogeneity, and allows for arbitrary Engel curves. The empirical value of our framework is illustrated in an econometric analysis of demand for food quality in China. Evaluating possible structural changes in consumer food expenditures in China is of paramount importance, given the ever-increasing global role of China and the implications of the structural food preference changes for the global food system. The major findings emerging from this study indicate that income is an important determinant of demand for food quality and quantity with the relatively more affluent provinces having a higher affinity for food quality.
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