Socioeconomic Determinants of Fast Food Consumption

Fast food consumption has increased dramatically over the past three decades in U.S., accounting for nearly 35.5% of total away-from-home expenditures in 1999 (USDA/ERS). Given dramatic changes in food consumption, and heightened public concern about health and obesity, there is a considerable need to understand better the factors affecting food consumption choices and the implications of these changes for the food industry and government policymakers. We specify a random utility maximization model to analyze factors influencing an individual’s food choice (food at home, fast food, and other food away from home). Bayesian analysis with Markov chain Monte Carlo methods is used to estimate a weighted extreme value logit model, which allows for sequential decision making. Data are from USDA’s Continuing Survey of Food Intakes by Individuals from 1994 to 1996 and the Supplemental Children’s Survey of 1998. Our results find highly significant and important (statistically and economically) interactions between the likelihood of fast food consumption and age, income, and household size.