Abstract

In this paper we use 2001-2002 urban survey data we collected to analyze demographics, cultural factors, and purchasing behaviors influencing the consumption of fresh milk, yogurt, ice cream, and powered milk in urban areas of China. The data include frequency of consumption by product, location of consumption and purchase, exposure to advertising and foreign culture, and school milk programs. The variables serve as regressors in a double-hurdle model that examines the decision to consume or not to consume and the level of consumption. We also estimate consumption levels and participation equations with tobit and probit models.

Keywords: China, dairy products, demand analysis, limited dependent variable models, survey data.