A two-stage budgeting LES-LA/Aids system is used to estimate rural household demand
in China with special emphasis on changes in demand for food commodities across
different income groups. The data used in this study are from China’s National Rural
Household sample survey for 1993. The own-price elasticity for food is more elastic than
those for clothing, housing, durable goods, and other items. Within the food group, price
elasticities range from -0.18 to -1.24. Wheat and coarse grains are still important staple
foods for the average rural household with an expenditure elasticity of almost unity. Meat
is the most price elastic among non-staple foods. The education level, the employment
structure, and the geographical location significantly effect on food consumption