Household food demand in urban China: a censored system approach

Household food consumption in urban China is investigated, using data from the 2000 Survey of Urban Households. A translog demand system is estimated taking account of reported zero consumption. High expenditure elasticities are found for milk and most meat products suggesting that demand for these products will grow faster than demand for other products as the economy develops and incomes increase. As in other market economies, prices play important roles in food demand. Demand is more price-responsive for milk than all other food products, and net substitution is observed among most food products. Regional differences are found so that changing demographics will have an important impact on future food demand in China. (C) 2004 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.