Economics, Econometrics and Finance
8 years ago

Local spending habits shift dramatically based on community size and income levels.

˜The œJournal of agricultural economics research
Rural Retail Sales and Consumer Expenditure Functions
David Henderson

Paper Summary

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The study looked at how rural retail sales are affected by different types of income in different community sizes. They found that when rural income goes up, people in smaller communities tend to spend less on local retail goods, while people in larger communities tend to spend more. The results varied across different types of retail businesses, with some seeing a decrease in sales and others seeing an increase. Overall, the study showed that the relationship between income and local retail spending is complex and varies depending on the size of the community.