Patrick J. Byrne

Analysis of Food-Away-from-Home Expenditure Patterns for U.S. Households, 1982–89

The two-step decision process for food-away-from-home (FAFH) consumption is empirically estimated using a generalization of the Heien and Wessells approach. Household information gathered by the National Panel Diary Group is used for the analysis. Marginal effects are corrected by untangling the respective variable impacts on the inverse Mills ratio. Expenditure and participation probability elasticities are similar to previous studies. Income elasticities are about 0.20, suggesting that the FAFH commodity is a necessary good for U.S. society. Northeastern households are less likely to consume FAFH than other households, but their expenditures are higher on average. Copyright 1996, Oxford University Press.

Analysis of quick-serve, mid-scale, and up-scale food away from home expenditures

U.S. households spend nearly one-half of their food budget for food away from home (FAFH) with an increasing share for fast-food facilities. These trends can impact the structure of the food distribution industry, nutritional intake of U.S. households, and demand for goods at the farm level. This analysis investigates the effects of socioeconomic and demographic variables, both on the decision to consume FAFH by facility and on the decision of how much to spend on FAFH by facility. Based on National Panel Diary data, three facility types are considered: quick-serve, mid-scale, and up-scale.

Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction

Using the Heckamn approach, either in single-equation or multi-equation settings, general expressions are derived for calculating marginal effects and elasticities. In the conventional calculation of marginal effects, terms related to the change in the inverse of Mills ratio are omitted. Using data from the 19877-88 Nationwide Food Consumption Survey, we calculate income and household size elasticities for 12 food commodities. We compare the magnitudes and signs of the elasticities using the conventional expressions of marginal effects and our derived expressions. Bottomline, sizeable differences, especially in single-equation applications, can occur in calculating marginal effects if one fails to account for changes in the inverse of the Mills ratio.

Pesticide residue concerns and shopping location likelihood

Pesticide residues are one component of the larger food safety issue. Levels of pesticide residue concern are increased by concerns not only with perceived risks associated with conventional produce, but also with issues such as safety, nutritional value, environmental effects, and need for increased societal control of the food supply. Concern for pesticide residues and importance of healthfulness in the food purchase decision resulted in increases in the probability that consumers would shop at a supermarket that offered pesticide-residue free produce, even at higher prices. However, price had a significantly negative effect on the probability and price is usually a sensitive issue with most supermarkets. ©1994 by John Wiley & Sons, Inc.

Calculating marginal effects in dichotomous - continuous models

In many economic settings, individual decisions can be viewed as a sequential process where a dichotomous choice is followed by a continuous choice. These processes are frequently encountered in consumption demand studies, where the decision of whether or not to consume a particular commodity is followed by the choice of how much to consume. The Heckman two-step approach has been extensively used in estimating these models. Expressions are derived for calculating marginal effects of regressors in dichotomous-continuous models. It is proposed that the marginal effect expressions are incomplete in almost all consumption demand studies that use the Heckman approach. In dichotomous-continuous models, a change in an explanatory variable that is common to both stages of the decision process has two effects: (1) it affects the likelihood of whether the commodity will be consumed; and (2) if the commodity is consumed, it affects the expenditure on that commodity. The first effect has so far been omitted from applied demand studies. The correct marginal effect expressions are derived for single-commodity and multiple-commodity demand models. An application to consumption survey data on 12 food commodities shows that erroneous marginal effect expressions can introduce substantial bias in demand elasticity estimates.

AN EVALUATION OF CONSUMER PESTICIDE RESIDUE CONCERNS AND RISK INFORMATION SOURCES

Marginal probability effects of demographic variables on consumer concerns about pesticide residues were assessed as well as the likelihood of consumer beliefs given different channels of information on produce safety and risks. This was done using maximum likelihood estimation (MLE) of ordered logit models. The empirical results showed that pesticide residue concern levels appeared to be lower for more highly educated and high income households. Safety information from the academic community was found to have the highest likelihood of acceptance by consumers.

Determinants Of Wholesale Beef-Cut Prices

Key determinants of monthly wholesale prices for 12 beef cuts include the quantity of the specific cut, stickiness in prices, marketing costs, quantities of pork and chicken, and seasonality. Seasonal patterns across the respective cuts are very different. Relative to the price in December, prices at the wholesale level in other months can be as much as 6 percent lower to as much as 21 percent higher.

Analysis of Marketing Margins in the U.S. Lamb Industry

Factors affecting marketing margins were identified and assessed using a relative price spread technique. Margins were disaggregated into slaughter-to-wholesale and wholesale-to-retail for a more complete understanding. Marketing costs, concentration, demand, and price were used to explain variations within these margins. Results showed that packer concentration had a significant effect on margins. Forces of supply and demand (as represented by production and market price) and changes in marketing costs also explained the variation in margins. A higher degree of price transmission from slaughter-to-wholesale level was observed in comparison to the wholesale-to-retail level.