Food demand in China

What is it about?

A dynamic demand function has been estimated econometrically analysing food demand of urban Chinese consumers. The results indicate that most primary food products are necessities and price inelastic. Furthermore, the dynamic model tends to yield relatively smaller expenditure elasticities in magnitude than static models.

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Why is it important?

Chinese cities host a substantial and increasing number of consumers. Their aggregated behaviour might have implications for global food markets. Thus, a better understanding of consumption patterns will help to generate better informed outlooks.