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Article
Publication date: 14 November 2016

Genanew Bekele, Reza H. Chowdhury and Ananth Rao

The purpose of this paper is to consider borrower-specific characteristics to understand the factors affecting both the probability and quantum of loan default by individual…

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Abstract

Purpose

The purpose of this paper is to consider borrower-specific characteristics to understand the factors affecting both the probability and quantum of loan default by individual borrowers under Islamic and conventional banking.

Design/methodology/approach

Borrower-specific characteristics that explain the probability of default may not necessarily be similar factors that determine the quantum of default. The authors therefore apply a Box-Cox double hurdle model to treat both the probability and quantum of default in a two-step approach. The authors also explain the differences in default risk and quantum of default between Islamic and conventional banking borrowers from their behavioral perspectives following the Sharia principles in financial transactions between lenders and borrowers. The authors use borrower-specific information of two separate bank branches of the United Arab Emirates that solely deal with either Islamic or conventional banking products.

Findings

The paper demonstrates that the probability of default and the quantum of default appear to be influenced by different set of client-specific factors. The results suggest that the probability of default does not vary significantly between Islamic and conventional banking borrowers. The evidence also shows that Islamic banking defaulters, compared to those in conventional banking, repay a large quantum of overdue when their financial leverage improves. However, they do not tend to reduce their outstanding quantum of overdue faster than conventional banking defaulters.

Research limitations/implications

Availability of data from only two bank branches may limit the explanatory power of empirical findings.

Practical implications

The study findings will enable the Islamic and conventional banks to appropriately address Basel Capital requirements based on the borrowers’ behavior.

Social implications

The study findings have the potential for Islamic and conventional financing institutions to be more flexible with equity in their lending practices.

Originality/value

Religious beliefs are crucial in borrower’s default behavior in Islamic banking.

Details

Review of Behavioral Finance, vol. 8 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 27 January 2012

Junfei Bai, Caiping Zhang, Fangbin Qiao and Tom Wahl

The purpose of this paper is to investigate factors influencing household food consumption away from home in Beijing by type of food facility and type of meal.

Abstract

Purpose

The purpose of this paper is to investigate factors influencing household food consumption away from home in Beijing by type of food facility and type of meal.

Design/methodology/approach

Derived from the Becker's household production and consumption theory, the authors econometrically specified household expenditure function on food away from home. Box‐Cox transformed doublehurdle models were estimated. The data were collected in 2007 in Beijing China by the authors, using a diary‐based method designed specifically for this study.

Findings

Household income, time opportunity cost and other socio‐demographic and economic factors were found to be important determinants of household participation and expenditure decisions for dining out. However, the importance of these factors varied by type of food facility and type of meal. Meanwhile, the estimated elasticities with respect to income were correspondingly higher than those for developed countries, suggesting that the demand for food away from home by Chinese households is still in an upward trend.

Originality/value

To the best of the authors' knowledge, this study is the first to analyze Chinese household food consumption away from home by type of food facility and type of meal. Besides, this study uses an exclusive dataset collected from a seven‐day diary‐based survey. The data include more specific information on food away from home than the Urban Household Income and Expenditure (UHIE) survey data conducted by National Bureau of Statistics of China. The UHIE data were extensively used in previous studies on food consumption in China, but are believed to significantly underestimate food away from home consumption.

Details

China Agricultural Economic Review, vol. 4 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Book part
Publication date: 12 April 2012

Péter Elek, János Köllő, Balázs Reizer and Péter A. Szabó

We estimate a double-hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the…

Abstract

We estimate a double-hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation and an unreported cash supplement). We estimate the probability of under-reporting for minimum wage earners, simulate their genuine earnings and classify them and their employers as ‘cheaters’ and ‘non-cheaters’. In the possession of the classification, we check how cheaters and non-cheaters reacted to the introduction of a minimum social security contribution base, equal to 200 per cent of the minimum wage, in 2007. The findings suggest that cheaters were more likely to raise the wages of their minimum wage earners to 200 per cent of the minimum wage, thereby reducing the risk of tax audit. Cheating firms also experienced faster average wage growth and slower output growth. The results suggest that the DH model is able to identify the loci of wage under-reporting with some precision.

Details

Informal Employment in Emerging and Transition Economies
Type: Book
ISBN: 978-1-78052-787-1

Keywords

Article
Publication date: 26 August 2014

Jingjing Wang, Yongfu Chen, Zhihao Zheng and Wei Si

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to…

Abstract

Purpose

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to income elasticity and price elasticity of demand.

Design/methodology/approach

The double-hurdle model is fit to the household data of Sichuan and Xinjiang provinces which is from the National Bureau of Statistics urban household surveys.

Findings

The paper finds that consumers’ purchasing decisions regarding pork are related to both non-economic and economic factors. The results also indicate large differences among the determinants for decision of how much pork to buy across the three income strata. Low-income households have higher income elasticity than middle-income and high-income households. High-income and middle-income households’ level of pork consumption is more sensitive to pork price. High-income households have greater cross-price elasticity.

Originality/value

In the previous studies, the non-economic determinants of pork consumption have not been addressed, and neither does the issue of difference pork purchasing behavior across income strata for urban households in western China. So this study uses the double-hurdle model to investigate the determinants of pork consumption in urban western China.

Details

China Agricultural Economic Review, vol. 6 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 8 May 2018

Yongfu Chen, Wenbo Zhu and Ziyuan Chen

China is not only the biggest mutton consumer, but also the top mutton importer in the world. China’s urban households are becoming the key driving force behind a surge in mutton…

Abstract

Purpose

China is not only the biggest mutton consumer, but also the top mutton importer in the world. China’s urban households are becoming the key driving force behind a surge in mutton consumption. Therefore, the purpose of this paper is to investigate the determinants of mutton demand in urban China.

Design/methodology/approach

Based on a sample of 32,910 urban households across six provinces and autonomous regions, an inverse hyperbolic sine (IHS) double-hurdle model is estimated, by maximum likelihood estimation, to reveal the determinants of mutton consumption-at-home.

Findings

The empirical results indicate that, first, household income has a positive effect on mutton consumption, and higher income households have a higher income elasticity; second, wet weather increases probability, but reduces conditional level and unconditional level; finally, minority group households consume more mutton than Han group households.

Practical implications

It is necessary for policymakers to develop a long-term outlook in relation to the increase of China’s mutton appetite and to shift from a domestic perspective to a global one and develop diversified import strategies. Furthermore, policymakers require to make a practicable emergency preplan for tackling short-term agglomeration of demand for mutton, attributed to festivals, and religious events of a minority ethnic group.

Originality/value

This is a major work based on a large sample of 32,910 urban households conducted by the National Bureau of Statistics of China. This paper uses an IHS double-hurdle model to quantify the determinants of mutton consumption; it sheds light on the climatic, regional, and ethnic characteristics of mutton consumption in urban China.

Details

British Food Journal, vol. 120 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 March 2018

Andrea M. Leschewski, Dave D. Weatherspoon and Annemarie Kuhns

The purpose of this paper is to analyze households’ acquisition of healthy food away from home (FAFH) from restaurants. Specifically, determinants of households’ decision to…

Abstract

Purpose

The purpose of this paper is to analyze households’ acquisition of healthy food away from home (FAFH) from restaurants. Specifically, determinants of households’ decision to purchase healthy FAFH, the share of households’ FAFH expenditures allocated to healthy FAFH and the share of households’ FAFH calories obtained from healthy items are identified.

Design/methodology/approach

Using data from the National Household Food Acquisition and Purchase Survey, the UK Food Standards Agency’s Nutrient Profiling Model is used to classify the healthfulness of households’ FAFH purchases. A double-hurdle model is estimated to identify determinants of households’ decision to purchase healthy FAFH and the share of their FAFH expenditures and calories allocated to healthy items.

Findings

Households’ acquisition of healthy FAFH varies with income, food assistance, FAFH purchase frequency, dieting, restaurant type, household composition, region and season. There is little difference in the impact of these factors on healthy FAFH expenditure shares vs calorie shares, suggesting that healthy FAFH expenditures proxy the contribution of healthy FAFH to a households’ diet.

Practical implications

Results suggest that increased availability of healthy FAFH may need to be supplemented by targeted advertising and promotions, revisions to nutrition education programs, improved nutrition information transparency and value pricing in order to improve the dietary quality of households’ FAFH acquisitions.

Originality/value

This study is the first to analyze household acquisition of healthy FAFH.

Details

British Food Journal, vol. 120 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 26 January 2010

Jasper Fanning, Thomas Marsh and Kyle Stiegert

Fast food (FF) consumption increased dramatically through the 1990s in the USA, accounting for nearly 35.5 percent of total away‐from‐home expenditures in 1999. Given dramatic…

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Abstract

Purpose

Fast food (FF) consumption increased dramatically through the 1990s in the USA, accounting for nearly 35.5 percent of total away‐from‐home expenditures in 1999. Given dramatic changes in food consumption, and heightened public concern about health and obesity, there is a considerable need for research to understand better the factors affecting US FF consumption. This paper aims to fill this gap.

Design/methodology/approach

In this paper, logistic regression is applied to analyze the socioeconomic and demographic factors influencing the likelihood of consuming FF using United States Department of Agriculture data from the Continuing Survey of Food Intakes by Individuals from 1994 to 1996 and the Supplemental Children's Survey of 1998.

Findings

In general, the expected likelihood of FF consumption increases until around 20‐30 years of age and then decreases; increases as household income grows until about $50,000‐60,000 and then decreases; and decreases as household size grows. Further, males from the Midwest and South regions that live outside central cities in Metropolitan Statistical Areas have the highest likelihood of consuming FF.

Originality/value

While much literature has addressed key questions about expenditure on food away from home, this study complements previous work by focusing on food items consumed from FF facilities in the 1990s. In addition, the results find highly significant and important (statistically and economically) interactions between the likelihood of FF consumption and age, income, and household size.

Details

British Food Journal, vol. 112 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 February 2001

Martin Falk and Katja Seim

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996…

1258

Abstract

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996 cross‐sectional data for approximately 1,000 West German firms. The empirical evidence indicates that IT capital and high‐skilled labor are complements in the production process: firms with higher IT investment output ratios employ a larger fraction of high‐skilled workers at the expense of unskilled workers. To a lesser extent, the positive IT effect carries through for workers with vocational degrees including masters and technicians. Furthermore, we find that firms’ expectations of the future size of their high‐skilled workforce are positively related to their initial IT investment output ratio. To account for censoring in the employment variables, the empirical analysis uses Powell’s Censored Least Absolute Deviations estimators as well as standard Tobit estimators.

Details

International Journal of Manpower, vol. 22 no. 1/2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 10 May 2011

Sanae Tashiro and Chu‐Ping Lo

The purpose of this paper is to examine how nutritional concerns, luxurious tastes, and the value of time affect time allocation decisions for food preparation.

Abstract

Purpose

The purpose of this paper is to examine how nutritional concerns, luxurious tastes, and the value of time affect time allocation decisions for food preparation.

Design/methodology/approach

A time allocation model is developed and tested with Tobit and Heckman's sample selection models using the 2003‐2007 American Time Use Survey data.

Findings

Individuals concerned more with nutrition or price than luxury devote more time to preparing food‐cooked‐at‐home. High family income and long hours worked increase time allocated to food‐away‐from‐home, indicating that a preference for luxury and the opportunity cost of time outweigh nutritional concerns. High education reduces time spent preparing food‐cooked‐at‐home, yet increases both participation in this activity and time spent obtaining food‐away‐from‐home, suggesting that a preference for luxury and the opportunity cost of time dominate nutritional preference. Time allocation decisions on food preparation vary greatly by race and ethnicity.

Originality/value

The results of this study confirm that the time allocation decisions regarding food preparation are largely affected by an individual's luxury preference, nutritional consciousness, and the value of time, all of which are influenced by education. The findings from this study indicate factors that influence consumers' time allocation decisions regarding food choice and their current food preparation behavior, and thus provide useful insights to nutritionists, dietitians, health practitioners, and policy makers for finding better ways to improve nutritional education, food choices and dietary habits that promote healthier diets and eating habits.

Details

China Agricultural Economic Review, vol. 3 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 26 November 2018

Pedro Queiroz and Alexandre B. Coelho

The purpose of this paper is to estimate the determinants of per capita expenditures with disaggregate food away from home (FAFH) including variables such as family structure.

Abstract

Purpose

The purpose of this paper is to estimate the determinants of per capita expenditures with disaggregate food away from home (FAFH) including variables such as family structure.

Design/methodology/approach

The authors estimated a system of expenditure equations (SUR method) with data from the latest Consumer Expenditure Survey of 2008–2009 – (or Pesquisa de Orçamentos Familiares – POF), considering the complex sample design in estimation procedures.

Findings

The authors found a positive relationship between woman’s opportunity cost of time and FAFH spending only when the authors considered the effects of wife’s education in higher income class. Hiring domestic help diminishes FAFH spending, mostly for lunch and dinner time meals. The presence of children in the household decreases the consumption of most FAFH categories.

Social implications

Even though, Brazilian FAFH consumption has been increasing, the presence of women in the labor market seems to play a small role in the determining this type of food consumption. Family structure plays an important role in determining FAFH.

Originality/value

The contribution of the paper is to estimate FAFH expenditures at the disaggregate level and by income class for Brazil. The authors also included alternative family structure specifications as determinants in the model. The authors considered the sample design characteristics in estimation.

Details

International Journal of Social Economics, vol. 46 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

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