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Review of Middle East Economics and Finance

Ed. by Dibeh, Ghassan / Assaf, Ata / Cobham, David / Hakimian, Hassan / Henry, Clement M.

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1475-3693
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Volume 13, Issue 1

Towards Understanding Vegetables Consumption Behaviour in Iran: A Full Box-Cox Double-Hurdle Application

Hatice Ozer Balli
  • Associate Professor in Economics, School of Economics and Finance, College of Business, Massey University, Room QB 3.44, Quadrangle Building B, Albany, New Zealand
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/ Mohammad Amin Kouhbor
  • Corresponding author
  • Assistant Professor in Economics, Department of Economics, College of Marine Managements and Economic, Khorramshahr University of Marine Science and technology, Khorramshahr, Iran (the Islamic Republic of)
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/ Rosmy Jean Louis
  • Professor and Chair, Department of Economics, Vancouver Island University, 900 Fifth St, Nanaimo, BC V9R 5S5, Nanaimo, Canada
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Published Online: 2017-05-18 | DOI: https://doi.org/10.1515/rmeef-2016-0017

Abstract

Using Iran’s 2010–2011 household survey data on income and expenditure, this paper estimates the demand for vegetable consumption. Based on the Vuong’s (1989) Likelihood Ratio Test for Model Selection and Non-Nested Hypothesis, a full Box-Cox double-hurdle model adjusted for heteroskedasticity, dependency, and normality was estimated to uncover factors underlying Iranian households’ decisions to purchase and consume vegetables. Results show that all demographic, socioeconomic, and geographical variables significantly explain vegetable consumption behaviour in Iran. A positive relationship exists between educational attainment and the decision to purchase and consume vegetables. As well, households’ size and average age exert a statistically significant positive effect on vegetable consumption.

Keywords: consumer behaviour; food policy; limited dependent variables model; vegetables demand

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About the article

Published Online: 2017-05-18


Citation Information: Review of Middle East Economics and Finance, Volume 13, Issue 1, 20160017, ISSN (Online) 1475-3693, ISSN (Print) 1475-3685, DOI: https://doi.org/10.1515/rmeef-2016-0017.

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