A double-hurdle model of Irish households' foodservice expenditure patterns

The aim of this paper is to analyse the various factors fuelling demand for Food- Away - From- Home (FAFH) in Ireland. The two largest components of this industry, the quick- service sector (fast food and takeaway) and the full- service sector (hotel and restaurant meals), are analysed using the most recently available Household Budget Survey data for Ireland. The results from a Box- Cox double hurdle model indicate that different variables affect expenditure in the different sectors in different ways. Income has a greater effect on full- service expenditure than on quick- service. Similarly households that are healthconscious indicate a greater preference for full- service meals while households with higher time values indicate a greater preference for quick- service. Households of a higher social class and those with higher education levels also appear to favour full- service expenditure. In addition, younger, urbanised households favour quick- service meal options. The results emphasise the merits of adopting a disaggregated approach to analysing foodservice expenditure patterns.Foodservice, Food- Away- From- Home, Quick- service, Fullservice, Food Consumption/Nutrition/Food Safety, D12, D13, C34, R2,

Educational loans and attitudes towards risk

We explore the relationship between willingness to take financial risk and the probability of taking out a loan for educational purposes as well as the influence of risk attitudes on the size of the loan using data drawn from the U.S. Survey of Consumer Finances. The findings suggest a positive relationship between individuals’ willingness to take financial risk and the probability of taking out a loan for educational purposes. Similarly, individuals’ willingness to take financial risk appears to be an important determinant of the size of the educational loan. The findings suggest that non-white individuals and individuals from less wealthy backgrounds are less likely to finance education through loans which could potentially increase inequalities in education and income if such individuals are deterred from investing in human capital

The Effectiveness of Post-Katrina Disaster Aid: The Influence of SBA Loans on Small Businesses in Mississippi

Following Hurricane Katrina, the United States government provided $45 billion in loans and rebuilding funds to individuals and businesses for the purpose of repairing the damage caused by the hurricane. However, it is not yet clear what impact this assistance had on small businesses in affected areas. In particular, the role of Small Business Administration (SBA) loans has yet to be fully examined. Though few doubt the benefits of short-term and immediate disaster relief, there is some debate on the benefits of SBA loans. Evidence suggests that receiving business loans may do more harm than good if the loan ultimately increases debt load. In this study we contribute to the disaster relief literature through completing the first analysis regarding the receipt of SBA loans after Hurricane Katrina. We find that there are several characteristics which increase the probability of application for a loan, but there is a set of different characteristics which determine the amount ultimately received. Further, results indicate that targeting programs for certain groups were unsuccessful in directing loans to these groups

Child labour and poverty linkages: A micro analysis from rural Malawian data

This study assesses the impact of income and asset poverty on child work using the rural sub-sample of the 2004 Malawi Integrated Household Survey. Instrumenting consumption expenditure with a location dummy variable and interacting consumption expenditure with household land-holding size in probit models, the likelihood of child labour is found to relate negatively with household consumption. On the other hand child labour relates positively with household land-holding size for consumption poor households only and when labour markets are imperfect. These findings do not discourage asset accumulation policies as a remedy against child labour but support policies that aim at increasing returns on the assets.Child labour, Poverty, Assets, Malawi

Educational loans and attitudes towards risk

We explore the relationship between willingness to take financial risk and the probability of taking out a loan for educational purposes as well as the influence of risk attitudes on the size of the loan using data drawn from the U.S. Survey of Consumer Finances. The findings suggest a positive relationship between individuals’ willingness to take financial risk and the probability of taking out a loan for educational purposes. Similarly, individuals’ willingness to take financial risk appears to be an important determinant of the size of the educational loan. The findings suggest that non-white individuals and individuals from less wealthy backgrounds are less likely to finance education through loans which could potentially increase inequalities in education and income if such individuals are deterred from investing in human capital.Educational loan, Risk aversion

The Impact of Access to Credit on the Adoption of hybrid maize in Malawi: An Empirical test of an Agricultural Household Model under credit market failure

A substantial amount of the literature has reported on the impact of access to credit on technology adoption, and many studies find that credit has a positive impact on adoption. However, most existing studies have failed to explicitly measure and analyze the amount of credit that farm households are able to borrow and whether they are credit constrained or not. They overlooked the fact that credit access can be a panacea for non-adoption only if it is targeted at households that face binding liquidity constraints. Guided by the frame work of a household model under credit market failure, this paper aims at investigating the impact of access to credit on the adoption of hybrid maize among households that vary in their credit constraints. The data used in the study is from Malawi collected by the International Food Policy Research Institute (IFPRI).Using the direct elicitation approach, households are classified into constrained and unconstrained regimes. We start by estimating the probability of being credit constrained, followed by an estimation of the impact of access to credit for the two categories of households (credit constrained and unconstrained), while accounting for selection bias. The impact of access to credit is estimated using a switching regression in a Double-Hurdle model. Results reveal that while access to credit increases adoption among credit constrained households, it has no effect among unconstrained households. Results also show that factors that affect adoption among credit constrained households are different from those that that affect adoption among unconstrained household. Landholding size, for example, has opposite effects on adoption in the two regimes of households. The policy implication is that microfinance institutions should consider scaling up their credit services to ensure that more households benefit from it, and in so doing maize adoption will be enhanced.credit constraints; double-hurdle; hybrid maize; adoption; Malawi

A Double-Hurdle Approach to Modelling Tobacco Consumption in Italy

This paper analyses the determinants of tobacco expenditures for a sample of Italian households. A Box- Cox double-hurdle model adjusted for heteroscedasticity is estimated to account for separate individual decisions concerning smoking participation and tobacco consumption and to correct for non-normality in the bivariate distribution of the error terms. Nested univariate and bivariate models are found to be excessively restrictive, supporting the adequacy of a generalized specification. Estimation results show that consumption decisions are significantly affected by income and demographic characteristics. In particular, income positively impacts tobacco expenditure, while participation probability substantially declines as age increases. The existence of significant gender differences in both smoking participation and tobacco consumption patterns is found, while high education and white collar occupation reduce the likelihood to smoke and tobacco expenditure levels. Single adult households have a lower probability of smoking initiation even if, conditional on smoking, they consume more. Finally, complementarity between tobacco and alcohol beverages suggests the necessity of joint public health strategies.tobacco consumption, double-hurdle models, limited dependent variables, Box-Cox transformation

Estimating the determinants of vehicle loan default in Malaysia: an exploratory study

As revealed by Malaysia’s bankruptcy statistics, around a quarter of bankruptcy in Malaysia is due to default of vehicle loan.This has led to the tightening up of vehicle loan underwriting and increased vehicle loan rejection rates. The need for a better credit risk scoring model is also raised by the banks.This warrants a study to estimate the determinants of vehicle loan default in Malaysia.This paper estimates the determinants of vehicle loan default probability which could be used to build a loan default prediction or forecasting model for credit risk scoring purposes.Using a simple random sample of 138 car loan borrowers that was provided by an established bank in Malaysia, the descriptive statistical procedures and econometrics modelling were performed to unveil these vehicle loan default determinants.Results of descriptive statistics revealed that more than half of the borrowers were default.Results of logit models further revealed that loan related characteristics are the most important determinants of probability of default.Specifically, the significant determinants of loan default were: areas of residence, vehicle purchase price, length of service, existing relationship with bank, interest rate, and available guarantor.Borrowers who are in high risk of default are characteristically those who reside in rural areas, secure higher vehicle purchase price, have longer length of employment service, are borrowers new to the bank, acquire loans charged with high interest rates, and are without a guarantor

Estimating the determinants of vehicle loan default in Malaysia: an exploratory study

As revealed by Malaysia’s bankruptcy statistics, around a quarter of bankruptcy in Malaysia is due to default of vehicle loan.This has led to the tightening up of vehicle loan underwriting and increased vehicle loan rejection rates. The need for a better credit risk scoring model is also raised by the banks.This warrants a study to estimate the determinants of vehicle loan default in Malaysia.This paper estimates the determinants of vehicle loan default probability which could be used to build a loan default prediction or forecasting model for credit risk scoring purposes.Using a simple random sample of 138 car loan borrowers that was provided by an established bank in Malaysia, the descriptive statistical procedures and econometrics modelling were performed to unveil these vehicle loan default determinants.Results of descriptive statistics revealed that more than half of the borrowers were default.Results of logit models further revealed that loan related characteristics are the most important determinants of probability of default.Specifically, the significant determinants of loan default were: areas of residence, vehicle purchase price, length of service, existing relationship with bank, interest rate, and available guarantor.Borrowers who are in high risk of default are characteristically those who reside in rural areas, secure higher vehicle purchase price, have longer length of employment service, are borrowers new to the bank, acquire loans charged with high interest rates, and are without a guarantor