Steve Morse

Type of Submission

AHFME Symposium Abstract


The relationships between restaurant failure rates and business cycles are examined at two levels: (1) state level for 50 U.S. states and (2) U.S. regional level for nine regions for the period 1990-1996. As a proxy measure for each state business cycle, deflated state Gross Domestic Product is used. Restaurant failure rates are derived from officia1U.S. Bankruptcy Court records. The correlation analysis suggests a negative linear relationship between state restaurant failure rates and state business cycles. At the regional level, both positive and negative relationships are observed.