THE STRUCTURE OF FOOD DEMAND IN URBAN CHINA: A DEMAND SYSTEM APPROACH

The structure of Chinese food demand is examined using a non-homothetic translog indirect utility function. This analysis uses household level survey data for 3 urban Chinese provinces over the 1995-1997 period. We improve upon previous studies by incorporating theoretically consistent equivalence scales to account for differences in household size and composition. These scales allow us to quantify the impact of alternative types of household members on food expenditures. Similar to previous research we find little evidence of purchase economies with the addition of members although, depending on age, we find statistically significant differences in equivalence values across household member age grouping.