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Challenging the Goldschmidt Theory of Rural Purchasing Patterns

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  • Foltz, Jeremy

    (U of Wisconsin)

  • Zeuli, Kimberly

Abstract

This work uses unique data from three dairy dependent communities in rural Wisconsin to test established theory and empirical studies that link farm structure to local purchasing patterns and community economic development. A theoretical model of purchasing choices is developed to derive the determinants of local purchasing by dairy farms. This model is tested empirically using a double bounded Tobit model. The empirical estimations find little support for any linkage between farm size and local purchasing patterns across eleven major dairy farm inputs. The results do suggest that different community business characteristics (the supply side) and community attachment provide some explanations for diverse purchasing patterns.

Suggested Citation

  • Foltz, Jeremy & Zeuli, Kimberly, 2004. "Challenging the Goldschmidt Theory of Rural Purchasing Patterns," Staff Paper Series 475, University of Wisconsin, Agricultural and Applied Economics.
    • Handle: RePEc:ecl:wisagr:475
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    References listed on IDEAS

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    1. Lawrence, John D. & Otto, Daniel M. & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 15(1), pages 1-17.
    2. Zeuli, Kimberly A. & Levins, Richard A., 1995. "Minnesota Agricultural Economist 682," Minnesota Applied Economist\Minnesota Agricultural Economist 13183, University of Minnesota, Department of Applied Economics.
    3. Chism, John W. & Levins, Richard A. & Honadle, Beth & Wang, Yin, 1994. "Minnesota Agricultural Economist no. 676," Minnesota Applied Economist\Minnesota Agricultural Economist 206493, University of Minnesota, Department of Applied Economics.
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    5. Foltz, Jeremy D. & Jackson-Smith, Douglas & Chen, Lucy, 2002. "Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), pages 1-11, April.
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    7. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, October.
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    10. Lawrence, John D. & Otto, Daniel & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Staff General Research Papers Archive 5149, Iowa State University, Department of Economics.
    11. Paulson, JoAnn & Parliament, Claudia & Taff, Steven J. & Stinson, Thomas F., 1989. "Minnesota Agricultural Economist No. 659," Minnesota Applied Economist\Minnesota Agricultural Economist 163943, University of Minnesota, Department of Applied Economics.
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