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The purpose of this paper is to attempt to investigate farmer’s positional concerns in rural China, and how the positional concerns correlate with household expenditures on visible goods.

The authors conduct a survey-based experiment to measure farmers’ positional concerns, and employ econometric models to examine the determinants of the degree of positional concern and how the positional concern affects household expenditures on visible goods.

The authors find that Chinese farmers have strong positional concerns for income, and high-income households are more concerned with relative position. Furthermore, there is a significant difference between males and females with respect to correlation between degree of positionality and household expenditures on visible goods. For females, there is a positive correlation between degree of positionality and household expenditures on clothes, restaurants, and mobile phones, respectively. For males, there is a positive correlation between degree of positionality and household expenditures on mobile phones.

The government policy thus should pay attention to the positional goods, and the relevant consumption tax by increasing the prices of visible goods could be considered or suggested in the future even in the rural areas.

This paper provides complementary evidence on Chinese farmers’ positional concerns, and how the degree of positional concern relates to household expenditures on visible goods.