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

Hatice Balli (), Kouhbor Mohammad Amin () and Jean Louis Rosmy ()
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Kouhbor Mohammad Amin: 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)
Jean Louis Rosmy: Professor and Chair, Department of Economics, Vancouver Island University, 900 Fifth St, Nanaimo, BC V9R 5S5, Nanaimo, Canada

Review of Middle East Economics and Finance, 2017, vol. 13, issue 1, 12

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 (search for similar items in EconPapers)
Date: 2017
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