Demand for food-away-from-home: A multiple-discrete-continuous extreme value model

Timothy Richards, Lisa Mancino

Research output: Contribution to journalArticle

6 Scopus citations

Abstract

Policymakers 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 data set 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 food-at-home 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.

Original languageEnglish (US)
Pages (from-to)111-133
Number of pages23
JournalEuropean Review of Agricultural Economics
Volume41
Issue number1
DOIs
StatePublished - Feb 2014

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Keywords

  • discrete-continuous models
  • food-away-from-home
  • obesity
  • taxation

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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