Price Endogeneity and Food Demand in Urban China
利用中国国家统计局提供的农产品供给变动数据，通过简化价格方程处理价格内生性，发现忽略该问题会导致需求弹性估计严重偏差，影响未来食品需求预测。
Abstract Price endogeneity has been ignored in previous analyses of food demand in urban China. We exploit data provided by the China National Bureau of Statistics on agricultural commodity supply shifters and use reduced‐form price equations to account for price endogeneity. 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 substantially biased elasticities and misleading estimates of future food demand in China.