Household Expenditure Patterns in Tianjin,

In recent years China has initiated economic reform. One objective of this reform is to improve consumer well-being by producing more agricultural and consumer goods. To achieve this objective, economic controls have been relaxed. A free market has been established and more economic incentives are provided for peasants and workers. The obvious questions to ask are: (1) have households increased their level of consumption? (2) Have the patterns or structure of consumption changed? (3) Has the change in price levels affected consumption? (4) To what extent has the establishment of a free market affected the consumption of free market goods versus goods from state stores? These are important policy questions for economists concerned with the Chinese economy.