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A Double-Hurdle Model of Irish Household Expenditure on Prepared Meals

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  • Carol Newman
  • Maeve Henchion
  • Alan Matthews

Abstract

In this paper, Irish households' expenditure on prepared meals for home consumption is analysed using the 1987 and 1994 Irish Household Budget Survey datasets. The aim of the paper is to analyse the factors influencing Irish households' decisions to purchase prepared meals and how much to spend on these food items. This is done using the double-hurdle methodology adjusted for the problems of heteroscedasticity and non-normality. Income elasticities are estimated for household expenditure on prepared meals in both years and significant socio-economic influences are identified. These socio-economic factors are assumed to underpin the tastes and preferences of Irish households, with convenience identified as a significant preference of many household groups.

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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 200119.

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Date of creation: 2001
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Handle: RePEc:tcd:tcduee:200119

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References

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  1. Yen, Steven T. & Huang, Chung L., 1996. "Household Demand For Finfish: A Generalized Double-Hurdle Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December.
  2. Su, Shew-Jiuan B & Yen, Steven T, 1996. "Microeconometric Models of Infrequently Purchased Goods: An Application to Household Pork Consumption," Empirical Economics, Springer, vol. 21(4), pages 513-33.
  3. Yen, Steven T & Jensen, Helen H & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the US: A Nonnormal and Hetroscedastic Double-Hurdle Model," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 343-56.
  4. Jones, Andrew M, 1992. "A Note on Computation of the Double-Hurdle Model with Dependence with an Application to Tobacco Expenditure," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 67-74, January.
  5. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
  6. Jensen, Helen H. & Yen, Steven, 1996. "U.S. Food Expenditures Away from Home by Type of Meal," Staff General Research Papers 922, Iowa State University, Department of Economics.
  7. Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
  8. Reynolds, Anderson & Shonkwiler, J S, 1991. "Testing and Correcting for Distributional Misspecifications in the Tobit Model: An Application of the Information Matrix Test," Empirical Economics, Springer, vol. 16(3), pages 313-23.
  9. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  10. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  11. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
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Citations

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Cited by:
  1. Han, Jae-Hwan & Harrison, R. Wes, 2006. "Consumer Valuation of the Second Generation of Genetically Modified (GM) Foods with Benefits Disclosure," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35277, Southern Agricultural Economics Association.
  2. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & Benedict, White, 2011. "Factors that affect the use of herbicides in Philippine rice farming systems," Working Papers 108769, University of Western Australia, School of Agricultural and Resource Economics.
  3. Keelan, Conor D. & Henchion, Maeve M. & Newman, Carol F., 2008. "Eating Out in the British Isles," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36859, Agricultural Economics Society.
  4. Davide Aristei & Federico Pierali & Luca Pieroni, 2007. "Cohort, Age and Time Effects in Alcohol Consumption by Italian Households: a Double-Hurdle Approach," Quaderni del Dipartimento di Economia, Finanza e Statistica 30/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor and Francis Journals, vol. 40(19), pages 2463-2476.
  6. Bente Halvorsen and Runa Nesbakken, 2004. "Accounting for differences in choice opportunities in analyses of energy expenditure," Discussion Papers 400, Research Department of Statistics Norway.
  7. Harris, James Michael & Shiptsova, Rimma, 2007. "Consumer Demand for Convenience Foods: Demographics and Expenditures," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), November.
  8. Fabiosa, Jacinto F., 2006. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," 2006 Annual meeting, July 23-26, Long Beach, CA 21417, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Harris, James Michael, 2005. "Using Nielsen Homescan Data and Complex Design Techniques to Analyze Convenience Food Expenditures," 2005 Annual meeting, July 24-27, Providence, RI 19344, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Richard Mussa, 2010. "Rural-Urban Differences in Parental Spending on Children’s Primary Education in Malawi," SALDRU Working Papers 49, Southern Africa Labour and Development Research Unit, University of Cape Town.
  11. James Carroll & Siobhan McCarthy & Carol Newman, 2005. "An Econometric Analysis of Charitable Donations in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 229-249.
  12. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
  13. Conor M. O'Toole & Carol Newman & Thia Hennessy, 2011. "The role of investment, fundamental Q and financing frictions in agricultural investment decisions: an analysis pre and post financial crisis," Working Papers 1101, Rural Economy and Development Programme,Teagasc.
  14. Zhang, Feng & Huang, Chung L. & Lin, Biing-Hwan, 2006. "Modeling Fresh Organic Produce Consumption: A Generalized Double-Hurdle Model Approach," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35435, Southern Agricultural Economics Association.
  15. Feng Zhang & Chung L. Huang & Biing-Hwan Lin & James E. Epperson, 2008. "Modeling fresh organic produce consumption with scanner data: a generalized double hurdle model approach," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 510-522.
  16. Keelan, Conor D. & Henchion, Maeve M. & Newman, Carol F., 2006. "A double-hurdle model of Irish households' foodservice expenditure patterns," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10083, European Association of Agricultural Economists.

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