Researchers prefer to use a demand system that best fits their data. This paper examines a nonnested test of comparison between the quadratic expenditure system (QES) and the almost ideal demand system (AIDS). We determine which model is more suitable by analyzing the value and the significance...

The Chinese grain policy reforms were implemented in 1994. The grain price subsidies were eliminated which led to a substantial grain price increase. This paper examines the welfare changes associated with the grain policy reforms. All welfare measures unambiguously show that the consumers...