ABSTRACT
This chapter begins with a brief review of previous empirical studies of Chinese grain demand modelling. It discusses the basic features of grain demand in China. The empirical models of food grain demand and the other uses of grain are then presented. There had been little modelling works on China’s domestic grain demand prior to the end of 1970s. In modelling China’s grain consumption, H. M. Noh, as his grain production model, used a combined quadratic time trend and ARIMA model. Van der Gaag employed an estimated Engel curve to project individual household consumption in China. Fan et al. adopted a dynamic almost ideal demand systems model to estimate various food demand parameters for Chinese rural households using provincial aggregate data from rural household surveys. Demand theory is one of the most highly developed areas of applied econometric research.
