The Impact of Food Price Inflation on Social Welfare in Urban China
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| Title | The Impact of Food Price Inflation on Social Welfare in Urban China
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| Author | Yang Tianyu and Zhang Pinyi |
| Organization | School of Economics ,Renmin University of China |
| Email | ytianyu@sina.com；shape2@sina.com |
| Key Words | Food Price; Social Welfare; Urban Household; Ranks |
| Abstract | This paper analyses the effect of food price shock on urban household of different provinces and ranks in China. A quadratic almost ideal demand system (QUAIDS) model is estimated using CHNS data of 2004 and 2009. Statistical tests suggest the QUAIDS is preferred over the conventionally used models. The results show that the food price inflation has a negative impact on urban residents. Meanwhile, the low-income households, who have limited access to other kinds of foods for substitution, are influenced more adversely than high-income ranks. What’s more, there is great difference of welfare loss between provinces. The households in relatively developed and big agricultural provinces are less affected by food price change. These findings can provide important information to policy makers and can help aid organizations design and implement better social assistance schemes in the future. |
| Serial Number | WP466 |
| Time | 2013-06-26 |
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