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Rural Retail Sales and Consumer Expenditure Functions


  • Henderson, David A.


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, issue 3.
  • Handle: RePEc:ags:uersja:139033

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    Cited by:

    1. 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.


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