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A double-hurdle model of Irish households' foodservice expenditure patterns

Author

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  • Keelan, Conor D.
  • Henchion, Maeve M.
  • Newman, Carol F.

Abstract

The aim of this paper is to analyse the various factors fuelling demand for Food- Away - From- Home (FAFH) in Ireland. The two largest components of this industry, the quick- service sector (fast food and takeaway) and the full- service sector (hotel and restaurant meals), are analysed using the most recently available Household Budget Survey data for Ireland. The results from a Box- Cox double hurdle model indicate that different variables affect expenditure in the different sectors in different ways. Income has a greater effect on full- service expenditure than on quick- service. Similarly households that are healthconscious indicate a greater preference for full- service meals while households with higher time values indicate a greater preference for quick- service. Households of a higher social class and those with higher education levels also appear to favour full- service expenditure. In addition, younger, urbanised households favour quick- service meal options. The results emphasise the merits of adopting a disaggregated approach to analysing foodservice expenditure patterns.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:eaae98:10083
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    File URL: http://purl.umn.edu/10083
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    References listed on IDEAS

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    1. Justo Manrique & Helen H. Jensen, 1998. "Working Women and Expenditures on Food Away-From-Home and At-Home in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 321-333.
    2. Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1053-1061.
    3. Binkley, James K., 2005. "The Effect of Demographic, Economic, and Nutrition Factors on the Frequency of Food Away from Home," 2005 Annual meeting, July 24-27, Providence, RI 19502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Patrick J. Byrne & Oral Capps & Atanu Saha, 1996. "Analysis of Food-Away-from-Home Expenditure Patterns for U.S. Households, 1982–89," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 614-627.
    5. Carol Newman & Maeve Henchion, 2001. "Infrequency of purchase and double-hurdle models of Irish households' meat expenditure," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(4), pages 393-420, December.
    6. Martinez-Espineira, Roberto, 2006. "A Box-Cox Double-Hurdle model of wildlife valuation: The citizen's perspective," Ecological Economics, Elsevier, vol. 58(1), pages 192-208, June.
    7. Stewart, Hayden & Yen, Steven T., 2004. "Changing household characteristics and the away-from-home food market: a censored equation system approach," Food Policy, Elsevier, vol. 29(6), pages 643-658, December.
    8. Vicki A. McCracken & Jon A. Brandt, 1987. "Household Consumption of Food-Away-From-Home: Total Expenditure and by Type of Food Facility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 274-284.
    9. Philip Lund, 1998. "Eating Out: Statistics and Society Presidential Address," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 279-293.
    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 829-844, September.
    11. Stewart, Hayden & Blisard, Noel & Bhuyan, Sanjib & Nayga, Rodolfo M., Jr., 2004. "The Demand For Food Away From Home: Full-Service Or Fast Food?," Agricultural Economics Reports 33953, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. 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.
    2. Ogundari, Kolawole & Arifalo, Sadiat Funmilayo, 0. "Determinants of Household Demand for Fresh Fruit and Vegetable in Nigeria: A Double Hurdle Approach," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
    3. Junfei Bai & Caiping Zhang & Fangbin Qiao & Tom Wahl, 2012. "Disaggregating household expenditures on food away from home in Beijing by type of food facility and type of meal," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(1), pages 18-35, January.

    More about this item

    Keywords

    Foodservice; Food- Away- From- Home; Quick- service; Fullservice; Food Consumption/Nutrition/Food Safety; D12; D13; C34; R2;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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