Tobit analysis of factors affecting vegetable expenditure patterns in U.S. households

Abstract

Household expenditure patterns were examined for vegetables in canned, fresh, and frozen forms and in five major subgroups. The source of data was the 1972-1974 U.S. Bureau of Labor Statistics Consumer Expenditure Diary Survey. Tobit analysis was employed to determine changes in the probability of vegetable purchases and changes in the magnitude of vegetable purchases as affected by household socioeconomic characteristics. The empirical analyses were based on information from 10,145 households. The list of characteristics hypothesized to affect vegetable expenditures included: (1) household income, (2) age-sex composition of the household, (3) region, (4) population density, (5) earner composition of the household, (6) education of the household manager, (7) race of the household head, and (8) food stamp participation. Household income, age-sex composition, population density, and region were the most important factors influencing expenditure patterns for vegetables. The remaining variates were statistically significant factors for only some vegetable subgroups and processed forms. Most important, except for total vegetables (the aggregate of all vegetable subgroups or processed forms), a change in any given socioeconomic characteristic was more likely to affect the number of households purchasing vegetables rather than the magnitudes of the purchases. Using this study, large numbers of socioeconomic profiles are constructed to examine household expenditure behavior and vegetables. Food marketers and industry analysts can use this information in planning location and format changes in food distribution outlets.