On the basis of local concavity assumptions, Exact Affine Stone Index implicit Marshallian demand system is
adopted to analyze Engel Curves and price elasticity for Chinese urban household. Our results show that a
demand system rank can be polynomials or splines of any order which support the conclusion of Lewbel and
Pendakur (2009). Engel Curves are affected by gender and education of householder, the number of minor
children and adults. Budget shares of food, clothing and transportation–communication decrease, and other
budget shares increase from 1995 to 2007. There are different influences between all categories of price
elasticities, most notably dwelling price. In addition, the quickly rising price and slow growth spending hamper
improvement of welfare from 2002 to 2012.