HomeDLSU Business & Economics Reviewvol. 26 no. 1 (2016)

Microeconometric Analysis of the Eating-out Behavior of Modern Filipino Households: The Tobit, the Craggit and the Heckit Models

Cesar C. Rufino



Despite the economic and commercial importance of food consumption away from home, very limited attempt has been made to investigate the evolution and economics of this type of food consumption among Filipinos over time. This study hopes to set the pace among local researchers in taking advantage of the availability of high quality primary data of nationwide household surveys to generate useful insights on the “eating out” behavior of modern Filipinos. The study will endeavour to establish the linkage between food demand behaviours and socioeconomic and demographic characteristics of households, highlighting on the difference between wealthy/not wealthy consumers and the increasing role of time constraint on the part of household members in their decision to “eat out”. To supply the dynamic content of the analysis, public use raw data files of several rounds of the Family Income and Expenditure Survey (FIES) are used. Relevant microeconometric models which address censoring, truncation and sample selectivity issues as well as the complex nature of the survey are also implemented. Results of the study confirm the empirical ascendancy of the Heckit model and the significant co-variation of FAFH consumption of Filipino households with its postulated determinants. Also established is the relevance of Engel’s Law to FAFH consumption and the establishment of FAFH as a necessity during the modern era.