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Article
Publication date: 21 September 2012

Johanna Burzig and Roland Herrmann

It is the objective of this paper to elaborate determinants of food expenditure patterns for the generation 50+ in Germany on the basis of an Engel‐curve analysis.

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Abstract

Purpose

It is the objective of this paper to elaborate determinants of food expenditure patterns for the generation 50+ in Germany on the basis of an Engel‐curve analysis.

Design/methodology/approach

Survey data for Germany are taken from the Survey of Health, Ageing and Retirement (SHARE) database. Food‐at‐home (FAH) expenditures of the generation 50+ are explained within a multiple regression analysis first. Then, a double‐hurdle approach based on the probit model and a truncated regression are utilized for reproducing the existence of food‐away‐from‐home (FAFH) expenditures and the share of FAFH expenditures on consumption expenditures across households. Available information on socio‐demographic variables, income and the health status of the respondents are introduced as regressors in the multivariate analyses.

Findings

FAH expenditures in the generation 50+ in Germany follow the theoretical expectations underlying Engel functions. With a rising income level, FAH expenditures increase as well but the income share of FAH expenditures declines as does the share of FAH expenditures in total food expenditures. Apart from income, the share of FAH expenditures in food expenditures rises with age, household size, and it is highest for the lowest education level. Moreover, it is higher for West than for East German households. Becoming a pensioner increases absolute FAH expenditures, but does not affect the FAH expenditure share significantly. Very different results are provided by the Engel‐curve analysis for food away from home. A rising income raises FAFH expenditures, whereas becoming a pensioner lowers it. The age variable is insignificant.

Practical implications

The estimated Engel curves suggest that food at home grows less with rising income than food away from home. In particular, the determinants of the per‐capita FAFH expenditures reveal important determinants of expenditures of the generation 50+ in a highly dynamic consumption category. The results have important marketing implications.

Originality/value

Despite the growing economic importance of the generation 50+ in industrialised countries, empirical evidence on how this age group behaves in its food expenditure pattern is often lacking. This study provides a first set of estimated coefficients from Engel curves for Germany. These show how income as well as sociodemographic and health variables affect per‐capita expenditures for FAH and FAFH consumption.

Details

British Food Journal, vol. 114 no. 10
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: 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 double‐hurdle 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

Article
Publication date: 29 June 2018

Emmanuel O. Nwosu, Obed Ojonta and Anthony Orji

Enhancing household consumption and reducing inequality are among the fundamental goals of many developing countries. The purpose of this study therefore is to disaggregate…

Abstract

Purpose

Enhancing household consumption and reducing inequality are among the fundamental goals of many developing countries. The purpose of this study therefore is to disaggregate household consumption expenditure into food and non-food and, thus, decompose inequality into within- and between-groups.

Design/methodology/approach

The study adopts generalised entropy (GE) measures. Second, the study uses regression-based inequality decomposition to ascertain the determinants of inequality in food and non-food expenditure using household demographic and socioeconomic characteristics as covariates.

Findings

The results show that non-food expenditure is the major source of inequality in household consumption expenditure in both urban and rural areas with inequality coefficients of above 0.6 compared to about 0.4 for food expenditure. The decompositions also show that within-group inequalities for non-food and food expenditure are, respectively, 0.97 and 0.365 using the Theil index, while between-group inequalities for non-food and food are, respectively, 0.016 and 0.035. Furthermore, the regression-based inequality decompositions show that variables such as living in rural areas, household size, household dwelling and household dwelling characteristics account for the significant proportion of inequality in food and non-food expenditure.

Originality/value

The policy implication of the findings, among others, is that policies should focus on addressing inequality within rural and urban areas, especially with respect to non-food expenditure than in inequality existing between urban and rural areas. These non-food expenditures include expenditure in education, health, energy, accommodation, water and sanitation.

Details

International Journal of Development Issues, vol. 17 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 25 June 2019

Bismark Amfo, Isaac Gershon Kodwo Ansah and Samuel A. Donkoh

The purpose of this paper is to examine how consumers’ concern for food safety and income levels influence vegetable consumption patterns and expenditure in Tamale, Ghana.

Abstract

Purpose

The purpose of this paper is to examine how consumers’ concern for food safety and income levels influence vegetable consumption patterns and expenditure in Tamale, Ghana.

Design/methodology/approach

Using data from a survey of 300 urban consumers, quantile regression analyses are used to examine how food safety consciousness, income and other factors influence vegetable expenditure across different quantiles.

Findings

Whereas protein-rich foods take smaller proportion, vegetables and cereals take more than half of the household food budget. Poor households spend greater proportion of income on food relative to wealthier households, although absolute amounts spent on food takes the opposite direction. Engel’s law applies to composite food expenditure and individual food classes. Bennett’s law applies to various food groups, with high-income households showing high dietary diversity than middle- and low-income households. Food safety consciousness and income groupings significantly influence vegetable expenditure at various quantiles. Expenditure of food safety conscious and high-income consumers are positioned on higher quantiles.

Research limitations/implications

The findings suggest a potential for agribusiness investors to develop safer vegetable niche markets in the study area.

Originality/value

The study is the first to analyze vegetable consumption in Ghana with a focus on food safety consciousness, income levels and consumers’ location.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 14 October 2019

Ayuba Seidu

The purpose of this paper is to provide a detailed analysis of the socioeconomic and demographic determinants driving food away from home (FAFH) consumption expenditures at full…

Abstract

Purpose

The purpose of this paper is to provide a detailed analysis of the socioeconomic and demographic determinants driving food away from home (FAFH) consumption expenditures at full service and fast food restaurants in transition Albania.

Design/methodology/approach

Using a nationally representative data set, this study estimates a system of full service and fast food restaurant consumption expenditures under sample selection framework. The system estimator exploits full information about the error correlations for gain in efficiency.

Findings

The results indicate that future growth of the foodservice industry in Albania will be driven by increased spending at full service restaurants due to rising opportunity cost of the food manager’s time at home, household income and years of formal schooling of Albanians.

Research limitations/implications

The findings of this study can inform policy deliberations in designing nutrition and education programs for the Albanian Government to combat rising obesity rates. Moreover, the findings can inform marketing strategies by foodservice firms in Albania. On FAFH–obesity debate, future research can focus on the analysis of FAFH consumption expenditures on obesity rates in Albania.

Originality/value

Consumption of FAFH is fast evolving in developing and transition economies. Albania, a typical transition country, is no exception. Concurrently, Albania is under epidemiological transition facing increased incidence of non-communicable diseases and obesity. Any intervention program by the Albanian Government aimed at reversing the rising obesity trend by targeting FAFH consumption should be based on sound empirical findings. Analysis of FAFH consumption expenditures across different foodservice facilities is an under-researched topic for Albania in the literature.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 16 November 2012

James L. Seale, Junfei Bai, Thomas I. Wahl and Bryan T. Lohmar

The purpose of this paper is to analyze the income sensitivity of food consumption in Beijing, China, using an original household survey data set collected by the Chinese Academy…

779

Abstract

Purpose

The purpose of this paper is to analyze the income sensitivity of food consumption in Beijing, China, using an original household survey data set collected by the Chinese Academy of Sciences.

Design/methodology/approach

An Engel curve model is fit to the household data of nine food categories and 35 food items, and both conditional and unconditional expenditure elasticities of demand are calculated and reported for the nine food groups and the 35 food items.

Findings

Working's model fits the data well, and the elasticity estimates are all reasonable in terms of economic theory, size and signs. The results indicate a relative large range in income sensitivity among the nine food groups and 35 food items in response to changes in household food expenditure levels.

Originality/value

The research analyzes unique and rich urban household survey data collected by the Chinese Academy of Sciences and is the most comprehensive analysis to date in terms of the number of food items studied for which expenditure elasticities are calculated. These elasticities may be used to study household food consumption patterns, to calculate caloric or nutrient elasticities, to study obesity in China, to study policy prescriptions in terms of taxes and subsidies on food, to infer welfare and affluence, and may be used as inputs into econometric models such as those used by the World Bank, IFPRI, and others.

Details

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

Keywords

Article
Publication date: 3 June 2019

Yuying Liu, Alan Renwick and Xinhong Fu

The purpose of this paper is to examine the impact of off-farm income on food expenditure, using survey data of 493 rural households from Gansu, Henan and Shandong provinces in…

Abstract

Purpose

The purpose of this paper is to examine the impact of off-farm income on food expenditure, using survey data of 493 rural households from Gansu, Henan and Shandong provinces in China.

Design/methodology/approach

A two-stage least squares estimator is used to jointly estimate the determinants of off-farm income and the direct impact of off-farm income on food expenditure while controlling for the endogeneity issue associated with off-farm income variable.

Findings

The empirical results show that gender, education of household head, household size, farm size, the presence of children, smartphone use and asset ownership mainly determine off-farm income, and the off-farm income affects food expenditure of rural households significantly. In particular, the results show that a 1,000 yuan increase in per capita off-farm income increases per capita food expenditure by 61 yuan. Further estimations reveal that off-farm income has a larger effect on food expenditure of high-income rural households relative to their low-income counterparts.

Originality/value

Although poverty implications of off-farm income have been well documented, few studies have analysed the effects of off-farm income on food expenditure of rural households. To the best of the authors’ knowledge, there are no studies on this issue that focus on rural China. Therefore, the present study attempts to provide a first insight into the association between off-farm income and food expenditure of rural households in China, with the aim of providing useful evidence for policymakers in their efforts to reduce rural and urban food consumption gap and further increase social welfare.

Details

British Food Journal, vol. 121 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 February 2017

Qi Cui and Jikun Huang

The purpose of this paper is to examine the impacts of large income and expenditure shocks on household food expenditures and determines whether the impacts of large shocks differ…

Abstract

Purpose

The purpose of this paper is to examine the impacts of large income and expenditure shocks on household food expenditures and determines whether the impacts of large shocks differ among households, especially low-income households.

Design/methodology/approach

The study’s data are drawn from a household survey conducted in rural China. Multivariate analysis examines the impacts of large income and expenditure shocks on food expenditures.

Findings

The impacts of large positive income shocks on food expenditure are moderate. However, households reduce their per capita food expenditures within a range of about 25-30 percent after suffering large negative shocks. The greatest impact is found for shocks where expenditures more than double, followed by the impact of shocks where income declines by more than half. Moreover, food expenditures among low-income households are much more sensitive to large negative income and expenditure shocks. The paper concludes with policy implications.

Originality/value

This is the first Chinese study to empirically examine the impacts of different income and expenditure shocks on household food expenditures. The results have important implications for smoothing households’ food consumption after they suffer from shocks.

Details

China Agricultural Economic Review, vol. 9 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 15 March 2022

Jan-Jan Soon

This paper focusses on how the educated and less-educated middle class react differently to income increases, against an intertwined literature backdrop of Engel's law, quality of…

Abstract

Purpose

This paper focusses on how the educated and less-educated middle class react differently to income increases, against an intertwined literature backdrop of Engel's law, quality of life, aspirational and conspicuous consumption. The paper seeks to answer two main questions: Is there evidence of the middle class, particularly the educated, trying to emulate the upper class by shifting towards aspirational consumption? Is there any distinct expenditure behaviour amongst the middle class?

Design/methodology/approach

Combining the Malaysian 2016 Household Expenditure Survey (HES) and the 2016 Consumer Price Indices datasets, quantile estimations are applied on the merged dataset of 14,326 households.

Findings

There is evidence of the educated middle class emulating the upper class in terms of food share, home furnishing and starchy produce expenditure behaviour. The less-educated middle class exhibits a predilection for home furnishing expenditures when income increases, whilst the educated shows signs of dissociating themselves from such material acquisitions. The paper concludes that the middle class is collectively an aspirational class, but with diverging paths towards upward social mobility between the educated and less-educated households.

Originality/value

Aspirational consumption of the middle class has not been given detailed empirical treatment at the household micro-level in the literature, especially for upper-middle income countries like Malaysia. The paper starts off by detecting an anomaly in the Engel's food share coefficients, where the middle class sees unexpected larger declines in food share than those of the upper class. This is the paper's departure point from the literature.

Details

International Journal of Social Economics, vol. 49 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

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