Effects of Income Distribution in an Inverse Demand System: Evidence from Chinese Household Survey Data
2858.ris
—
Octet Stream,
1 kB (1,390 bytes)
This study provides an empirical analysis of the impact of changes in income distribution on food demand in China using data from China Health and Nutrition Survey. A new parametric form of an inverse demand system is introduced and estimated taking into account of reported zero consumption. This new form is a natural extension of recent works by Brown & Lee (2008) and McLaren & Wong (2009) which accommodates incorporation of income distribution into the system and imposition of global regularity conditions in estimation. Our results generally indicate that the distribution of households across income groups is important in determining food demand in China, and that a movement toward a more equal income distribution in China will stimulate the demand for vegetable, fruit, fish and eggs.
RPRT
Wong, K.K.G.
Zhu, L.
Dang, Vinh Q.T.
2019
University of Macau
Taipa, Macau
2858