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Abstract
This study investigates the differentiated effects of economic and socio-demographic variables
on food away from home (FAFH) expenditures by type of facility among elderly households in
the United States. Using data from the 2008–2010 Consumer Expenditure Surveys, the systems
of expenditures on full-service, fast food, and other restaurants are estimated with a multivariate
sample selection estimator which also accommodates heteroscedasticity in the error distribution.
Statistical significance of error correlations among equations justifies estimation of the sample
selection systems. Income, employment statuses, race, education, geographic region, and
household composition are important determinants of FAFH expenditures. Income contributes to
full-service and fast-food expenditures by the elderly implying that the future of FAFH industry
is tied to macroeconomic conditions. Better education is associated with greater probabilities and
larger levels of expenditures at all facilities. Effects of the Supplemental Nutrition Assistance
Program (SNAP) are found to be strong and negative, invalidating policy concerns for the
general population that participation in the program might enhance consumption of less healthy
FAFH.