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Household Saving Behavior and the Influence of Family-Owned Business

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  • Amber Remble
  • Maria Marshall
  • Roman Keeney

Abstract

This study focused on the lifecycle income objective of business-owning (farm and nonfarm) households. We hypothesized that the complex relationship between household and business management decisions had the potential to challenge predictions from standard household savings theory. Specifically, we tested for differences in saving behavior of these entrepreneurial households relative to the average US household. A limited dependent variable model was performed, keying in on the saving behavior and ability of household respondents in the Survey of Consumer Finances for 2007. The estimation results indicated that, along with standard demographic influences of savings models, households owning a farm or nonfarm business had a significantly higher likelihood of maintaining private saving in a given year. Our results highlight the necessity for future research on household saving behavior to account for the differing objectives and choice sets faced by households that own businesses when conducting analyses of household saving. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Amber Remble & Maria Marshall & Roman Keeney, 2014. "Household Saving Behavior and the Influence of Family-Owned Business," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 411-422, September.
    • Handle: RePEc:kap:jfamec:v:35:y:2014:i:3:p:411-422
    DOI: 10.1007/s10834-013-9372-1
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    2. Yann de Mey & Erwin Wauters & Dierk Schmid & Markus Lips & Mark Vancauteren & Steven Van Passel, 2016. "Farm household risk balancing: empirical evidence from Switzerland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 637-662.
    3. de Mey, Yann & Wauters, Erwin & Lips, Markus & Schmid, Dirk & Vancauteren, Mark & Van Passel, Steven, 2014. "Farm household risk balancing in Switzerland and Belgium: an econometric and survey approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 186678, European Association of Agricultural Economists.
    4. Adhikari, Sudip & Khanal, Aditya R., 2020. "Does higher business risk influence financial risk and induce savings among small agricultural operations? Findings from Tennessee," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304509, Agricultural and Applied Economics Association.
    5. George Haynes & Maria Marshall & Yoon Lee & Virginia Zuiker & Cynthia R. Jasper & Sandra Sydnor & Corinne Valdivia & Diane Masuo & Linda Niehm & Renee Wiatt, 2021. "Family business research: Reviewing the past, contemplating the future," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 70-83, July.
    6. Aboohamidi, Abbas & Chidmi, Benaissa, 2015. "Changes in the Wealth of American Households during the 2007-2009 Financial Crisis in the U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205451, Agricultural and Applied Economics Association.
    7. Zeynep Copur & Michael S. Gutter, 2019. "Economic, Sociological, and Psychological Factors of the Saving Behavior: Turkey Case," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 305-322, June.
    8. Jucheol Choi & Daniel Kessler, 2023. "Influences of Start-Up’s Financial Intermingling on Entrepreneurial Stress in Sustainable Family Businesses: Mediation Effect of Work–Family Balance," Sustainability, MDPI, vol. 15(18), pages 1-14, September.

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