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Rural Retail Sales and Consumer Expenditure Functions

Author

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  • Henderson, David A.

Abstract

An elasticity of retail sales with respect to farm, manufacturing, and transfer income is estimated for three community sizes and seven types of retail businesses. The results indicate the aggregate marginal propensity to consume retail goods locally decreases in the smallest communities and increases in the largest communities when rural income increases. The estimated elasticity ranged from minus 4.9 to positive 5.6 across the seven business types and three sources of income.

Suggested Citation

  • Henderson, David A., 1990. "Rural Retail Sales and Consumer Expenditure Functions," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-8.
    • Handle: RePEc:ags:uersja:139033
    DOI: 10.22004/ag.econ.139033
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    File URL: https://ageconsearch.umn.edu/record/139033/files/5Henderson_42_3.pdf
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    Cited by:

    1. George Ebai & Thomas R. Harris, 1997. "Factors Influencing Trade Area Activity in the Great Basin Area," The Review of Regional Studies, Southern Regional Science Association, vol. 27(3), pages 251-275, Winter.
    2. Harris, Thomas R. & Ebai, George E., 1997. "Factors Influencing Trade Area Capture in the Great Basin Area," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35891, Western Agricultural Economics Association.
    3. Thomas R Harris & J. S. Shonkwiler, 1994. "Application Of Maximum Likelihood To A Bivariate Two-Limit Tobit Model For Estimation Of Rural Retail Sales Potential," The Review of Regional Studies, Southern Regional Science Association, vol. 24(2), pages 143-159, Fall.
    4. Deller, Steven C. & Kures, Matt & Ryan, William, 2006. "An Analysis of Retail and Service Sector Count Data: Identification of Market Potential for Wisconsin Counties," Staff Papers 12688, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

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    Keywords

    Consumer/Household Economics;

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