Demand for Food Away from Home: A Multiple Discrete/Continuous Extreme Value Model
AbstractPolicymakers have suggested the use of taxes to raise the relative cost of buying fast food. Yet, little is known of the structure of demand for food-away-from-home (FAFH) in general. This study provides estimates of the price-elasticity of demand for four different types of FAFH using a new dataset from NPD, Inc. and an econometric approach that accounts for the multiple discrete / continuous nature of FAFH demand. We find that cross-price elasticities of demand are small, so consumers are unwilling to substitute between FAH and any type of FAFH or among types of FAFH. Therefore, taxing fast food may be effective in reducing the number of fast food visits and shifting consumption to at-home meals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 127103.
Date of creation: 2012
Date of revision:
food away from home; demand; obesity; continuous / discrete models; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Marketing;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lee, Jonq-Ying & Brown, Mark G, 1986. "Food Expenditures at Home and Away from Home in the United States-A Switching Regression Analysis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 142-47, February.
- Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
- Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
- Mancino, Lisa & Todd, Jessica & Lin, Biing-Hwan, 2009. "Separating what we eat from where: Measuring the effect of food away from home on diet quality," Food Policy, Elsevier, vol. 34(6), pages 557-562, December.
- Michael L. Anderson & David A. Matsa, 2011.
"Are Restaurants Really Supersizing America?,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 3(1), pages 152-88, January.
- Anderson, Michael L. & Matsa, David A., 2008. "Are restuarants really supersizing America?," CUDARE Working Paper Series 1056R4, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised Jul 2010.
- Anderson, Michael L. & Matsa, David A., 2010. "Are Restaurants Really Supersizing America?," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4vm5m5vr, Department of Agricultural & Resource Economics, UC Berkeley.
- Timothy J. Richards & Luis Padilla, 2009. "Promotion and Fast Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 168-183.
- Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
- Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
- Shin-Yi Chou & Michael Grossman & Henry Saffer, 2002.
"An Economic Analysis of Adult Obesity: Results from the Behavioral Risk Factor Surveillance System,"
NBER Working Papers
9247, National Bureau of Economic Research, Inc.
- Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
- Brent R. Moulton, 1996. "Bias in the Consumer Price Index: What Is the Evidence?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 159-177, Fall.
- Jaehong Park & George C. Davis, 2001.
"The Theory and Econometrics of Health Information in Cross-Sectional Nutrient Demand Analysis,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 83(4), pages 840-851.
- Park, Jaehong & Davis, George C., 2000. "The Theory And Econometrics Of Health Information In Cross-Sectional Nutrient Demand Analysis," Faculty Paper Series 24015, Texas A&M University, Department of Agricultural Economics.
- Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
- K. K. Lancaster, 2010. "A New Approach to Consumer Theory," Levine's Working Paper Archive 1385, David K. Levine.
- Nakamura, Alice & Nakamura, Masao, 1998. "Model specification and endogeneity," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 213-237.
- Phaneuf, Daniel J., 1999. "A Dual Approach to Modeling Corner Solutions in Recreation Demand," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 85-105, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.