HOUSEHOLDS' GROCERY SHOPPING BEHAVIOR IN THE SHORT-RUN: THEORY AND EVIDENCE

Abstract

This paper extends the study of nonmarket work activities to explain the impact of household characteristics on grocery shopping behavior. A constrained utility maximization model is developed and the equilibrium conditions of the model are derived. These conditions and the hypotheses implied by them relating to the determinants of time spent in a grocery shopping trip, the size of a purchase, and the number of such trips within a given period of time were tested using data from a sample which identified the household characteristics of grocery shoppers. In these tests, using two-stage least squares, the theoretical implications of our simultaneous equations model are significantly supported.