On Price Endogeneity in the Analysis of Food Demand in China

Price endogeneity has been ignored in previous analyses of food demand in China. We exploit farm price data collected from the China National Bureau of Statistics to account for price endogeneity using reduced form price equations. Applying our unique econometric approach to the analysis of provincial-level food demand in China, we find strong statistical evidence of price endogeneity. Models that ignore price endogeneity result in substantial upward biased estimates of future food demand in China.


Issue Date:
2013-11
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/159771
PURL Identifier:
http://purl.umn.edu/159771
Total Pages:
34
Series Statement:
Staff Paper
P13-5




 Record created 2017-04-01, last modified 2020-10-28

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