The EASI Demand System : Evidence from China Household

We have applied the Exact Affine Stone Index(EASI) implicit Marshallian demand system ,invented by Lewbel and Pendakur (2009),and iterate three stage least squares to analysis Chinese household consumer demand in urban area.Our results show a demand system rank to equal five support the conclusion of Lewbel and Pendakur(2009), and the applicability of the model with or without interaction terms. Heterogeneity demographic characteristics and price effect Chinese household consumer demand system in urban area. From 1995 to 2007, the ratio of food and transportation-communication in total expenditure decrease ,and other expenditure ratio increase.