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Volume 66, Issue 4


Demand for Food Away from Home in Slovakia

Cupák, Andrej; Pokrivcak, Jan; Rizov, Marian

Year: 2016   Volume: 66   Issue: 4   Pages: 354-369

Abstract: We analyze demand for food away from home (FAFH) in Slovakia by means of a double-hurdle model using recent Slovak Household Budget Survey data covering the period 2006–2012. The estimated unconditional income elasticity of FAFH demand (1.37) demonstrates that away-from-home eating is still perceived as a luxury by Slovak households. An important feature of our applied theoretical framework is measurement of the effect of a wifeʼs opportunity cost of time. Results indicate that households where the wife is employed have significantly higher expenditure on FAFH compared to households where the wife is unemployed or a housewife. Further FAFH market growth can be expected in Slovakia in the future, driven by rising GDP, increasing participation of women in the job market, demographic changes towards an increase in the proportion of single-person households, and adoption of more individualistic lifestyles.

JEL classification: C21, C24, D12

Keywords: demand, double-hurdle model, food away from home, Slovakia


RePEc: http://ideas.repec.org/a/fau/fauart/v66y2016i4p3254-369.html

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