Urban Household Consumption in China: Price, Income, and Demographic Effects
In this paper, researchers detail a consumption function to estimate income and price elasticities for households in urban China.
Given the government’s goals to restructure the economy away from investment and exports to consumption and to reduce inequality, it is important to have a good understanding of China’s household consumption behavior and to obtain a good measure of consumption adjusted for price differences across regions. We estimate a consumption function that is flexible and distinguishes between different household types such as size and age of head. We develop detailed price data by region, including rental equivalents for owner-occupied housing. This provides us the estimates of income and price elasticities of different consumption bundles that should be useful for analyzing public policies. We find distinct elasticities for residents of large and small cities. For all urban households the income elasticity for food is about 0.7–0.8, housing is 0.8–0.9, and services is 1.4–1.5. The price elasticity for food and services is about 0.5 and 0.8, respectively.
Resources Radio — Nov 28, 2023
Counting Carbon in US Forests, with David Wear
David Wear discusses the rate at which US forests can remove carbon dioxide from the atmosphere, different approaches for estimating the amount of sequestered carbon, and the implications of varying estimates.
In Focus — Nov 28, 2023
In Focus: Native Nations and the Energy Transition
This video shares a brief overview of the economic dependence of some Native nations on fossil fuel production and the challenges of a transition to a clean energy system in the United States for these nations.
Common Resources — Nov 28, 2023
Native Nations in the Energy Transition
An ongoing research project explores energy development and production on Native American lands, along with the obstacles and paths to energy sovereignty for Native Nations.