What This Document Is
This document presents demand estimation results derived from Chinese household expenditure surveys conducted between 1991 and 1995. The analysis focuses on urban households and categorizes spending across eight broad groups: food, clothing, home furnishings, housing, transportation, entertainment, health, and other. A more detailed breakdown of food expenditures is also provided, including grain, meat, and vegetables. The core of the document details the statistical methods used to estimate these demand curves.
Why This Document Matters
This material is valuable for economists and researchers studying consumer behavior, particularly within the context of a developing economy like China’s during the early 1990s. It’s relevant within a Price Theory course as a practical application of econometric techniques to real-world data. Students and researchers can use these estimates as a starting point for further investigation into Chinese consumption patterns or as a case study in demand estimation methodologies.
Common Limitations or Challenges
This document provides *estimates* based on data from a specific period (1993-1995) and location (urban China). It does not offer a comprehensive analysis of the Chinese economy, nor does it provide current demand estimates. The statistical model relies on certain restrictions to ensure theoretical consistency, which may sacrifice some predictive accuracy. The document also assumes a level of familiarity with econometric modeling and demand theory.
What This Document Provides
The full document includes:
* Estimated demand curves in double-log form for various goods and total expenditures.
* Details on the statistical restrictions imposed during estimation (homogeneity, cross-Slutsky conditions, budget constraint).
* SAS programming statements used to perform the iterative seemingly unrelated regressions.
* Tests to verify consistency with the Law of Demand and the Slutsky own-price restriction.
* Information on the data source (Haiyue Nie’s Ph.D. dissertation).
This preview does *not* include the full regression output tables, the complete SAS code, or a detailed explanation of the econometric theory. It also does not provide interpretations of the estimated elasticities.