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The evolution of habit formation effect on sugar consumption of urban residents in China

The evolution of habit formation effect on sugar consumption of urban residents in China The purpose of this study is to explain the rapid growth of urban residents' sugar consumption in China from the perspective of habit formation.Design/methodology/approachUsing the provincial panel data of Chinese urban households from 1995 to 2012, this study uses the two-step System Generalized Moment Method (GMM) to test the habit formation effect on residents' sugar expenditure in urban China. We also use system GMM and the recursive estimated method to explore the changes of the habit formation coefficients in different years.FindingsWe find a significant habit formation effect on overall residents' sugar expenditure and different types of sugary foods expenditure. The habit formation effect on total residents' sugar expenditure and different types of sugary foods is decreasing over the years. The patterns of the changes of the habit formation effect on different types of sugar foods are slightly different.Research limitations/implicationsDue to data limitations, we are not able to do household-level analysis and to examine the heterogeneity of the habit formation effect.Originality/valueThis is the first study that examines changes in the habit formation effect on residents' sugar expenditure in urban China. Our findings provide a reasonable explanation for the rapid growth of residents' sugar consumption in urban China. The result helps to formulate targeted policies for future interventions to control the growth of sugar consumption. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

The evolution of habit formation effect on sugar consumption of urban residents in China

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References (41)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1756-137X
DOI
10.1108/caer-07-2020-0170
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to explain the rapid growth of urban residents' sugar consumption in China from the perspective of habit formation.Design/methodology/approachUsing the provincial panel data of Chinese urban households from 1995 to 2012, this study uses the two-step System Generalized Moment Method (GMM) to test the habit formation effect on residents' sugar expenditure in urban China. We also use system GMM and the recursive estimated method to explore the changes of the habit formation coefficients in different years.FindingsWe find a significant habit formation effect on overall residents' sugar expenditure and different types of sugary foods expenditure. The habit formation effect on total residents' sugar expenditure and different types of sugary foods is decreasing over the years. The patterns of the changes of the habit formation effect on different types of sugar foods are slightly different.Research limitations/implicationsDue to data limitations, we are not able to do household-level analysis and to examine the heterogeneity of the habit formation effect.Originality/valueThis is the first study that examines changes in the habit formation effect on residents' sugar expenditure in urban China. Our findings provide a reasonable explanation for the rapid growth of residents' sugar consumption in urban China. The result helps to formulate targeted policies for future interventions to control the growth of sugar consumption.

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: Jul 27, 2021

Keywords: Sugar consumption; Habit formation; China; System GMM

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