We estimate the first hurdle using a logistic regression in which the dependent variable equals one if a unit purchases goods and services in the budget category of interest, say food at home, and equals zero otherwise. We estimate the second hurdle using an OLS regression in which the dependent variable is the log of the amount of expenditures on food at home.17 Unlike the sample used for the logistic regression, the sample used to estimate the OLS model consists only of those units with positive expenditures on food at home.
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