There are so many studies analyzing expenditure behavior with international cross-section
data. However, there are few literatures involving demand analysis using data across
provinces in one single country. On one hand, China is a fast-growing developing country and
its composition of consumer demand is changing rapidly. On the other hand, China is one of
the world's largest countries, including more than 30 provinces, and there exists significant
income inequality between different regions. Per capita income of urban households in richest
province is more than ten times of that of rural households in poorest province. Therefore, it’s
particularly import to study demand patterns across provinces in China. In this study, an
AIDADS demand system is constructed based on household survey data from different
provinces. Then income elasticity and price elasticity are calculated for different provinces
and the trendy of provincial expenditure pattern is predicted. All these results will be useful
for analyzing regional effect of policies.