Household composition and food expenditures in China

With China admitted to the World Trade Organization there is the potential for dramatic increases in U.S. agricultural exports. The present analysis uses household‐level data to identify important determinants of expenditures on food for at‐home consumption by households in three Chinese urban provinces. Besides the role of household income, we examine the impact of household member age/gender composition on expenditures via the estimation of endogenously determined adult equivalents. Results from the analysis show that overall food at‐home expenditures are income inelastic, some commodities exhibit elastic responses to changes in their own price and household composition has a significant impact on food choice. [JEL category: D120].