We have applied the Exact Affine Stone Index(EASI) implicit Marshallian
demand system, invented by Lewbel and Pendakur (2009), and iterate three
stage least squares to analyse Chinese household consumer demand in urban
area. Our results show a demand system rank to equal five which supports the
conclusion of Lewbel and Pendakur (2009), and the applicability of the model
with or without interaction terms. Heterogeneity demographic characteristics
and price affect Chinese household consumer demand system in urban area.
From 1995 to 2007, ratios of food and transportation-communication in total
expenditure decrease ,and other expenditure ratios increase.