population and log expenditure growth across both rural and urban areas and all three regions in most cases.<sup>23</sup> The coefficients are larger among rural households and in the interior region than in urban areas and in the east systematically.<sup>24</sup> A one standard deviation increase of online purchases over population is associated with a 0.490 increase in growth of log annual household expenditure per capita on cosmetics and beauty products.<sup>25</sup> The magnitude is larger among rural households (0.983) than that among urban households (0.449). And the magnitude is the largest in the west, which is as high as 1.391. The relationship between the z-score and food consumption follows a similar pattern. When online purchases over population increases by one standard deviation above the mean, log household food consumption per capita growth increases by 0.355. The increase is 0.288 among urban households and almost three times that among rural households (0.842). In the east, it is 0.336 while in the central, it is similar to that in the east (0.352) and in the west, it is twice as large as that in the east (0.673). When purchases over population increases by one standard deviation above the mean, log household dining out consumption per capita growth increases by 0.580. In rural areas, it is as high as 1.260 and, in the west, it is as high as 1.528. A one standard deviation increase of online purchases over population is associated with 0.306 increase in growth of log annual household expenditure on clothes. The magnitude among rural households is almost threefold as large as that among urban households (0.729 and 0.269 respectively for rural and urban). And across the three regions, it is the largest in the west, which is 0.590, followed by the central region, which is 0.376 and is the smallest in the east, which is 0.257. When the z-score increases by one, log household communication consumption per capita growth increases by 0.242 for the whole sample, 0.210 for urban households, 0.565 for rural households, 0.184 in the east, 0.309 in the central region, and 0.545 in the west.<sup>26</sup> When the z-score increases by one, log household entertainment consumption per capita growth increases by 0.655 for the whole sample, 0.547 for urban households, 1.171 for rural households, 0.546 in the east, 0.852 in the central region, and 0.441 in the west.

Second, for goods and services that require a larger payment at one time and are less frequently purchased,<sup>27</sup> i.e., travel, automobiles, and durable goods, we also see a positive

> 23 The coefficient of health and fitness expenditure is about 0.3 for all households. As only roughly 10 percent of households reported health and fitness expenditure, we do not discuss this in the paper.

> 24 The coefficient of utility expenditure is about 0.18 for all households, smaller than those of other variables. This might be related to the nature of utility consumption.

> 25 Cosmetic and beauty products, including a wide range in prices from the very low end in the spectrum, are becoming a popular purchase online, in particular, among young female online buyers.

> 26 We do not have information on whether dining out refers to sit-down dining only or includes fast food consumed outside or home delivery. One possible explanation for the large coefficient of dining out is the rapid increase of the availability of online food delivery.

> 27 From the CFPS data, less than 50 percent of the households reported such consumption expenditures.

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