AT-HOME CONSUMPTION OF CHEESE - A PURCHASE-INFREQUENCY MODEL

For many commodities, zero purchases are recorded in household budget surveys even though positive consumption occurs. This may reflect a survey period that is shorter than the purchase cycle. The present study estimates a purchase-infrequency model for cheese using the 1987 BLS Consumer Expenditure Survey. Appropriateness of the Tobit specification is examined along with the assumption of independence of the two-stage expenditure decision process.