IDEAS home Printed from
   My bibliography  Save this paper

Effects of Changes in Income on Changes in Consumption: An Empirical Investigation for Illinois Farm Households


  • Durguner, Sena
  • Ellinger, Paul N.
  • Arends-Kuenning, Mary


Using repeated cross section data, this study identifies how changes in income (defined over different ranges of income change) affect changes of farm household consumption. OLS regression confirms that the number of members within a farm household positively affects changes of consumption at the 1% significance level, and households with children compared to childless households are recognized to have lower change of consumption at the 5% significance level. In addition, households that experience income increases of more than 50% have higher changes of consumption compared to households who face an income decrease of more than 50% at the 1% significance level. However, no significant change of consumption is found for households with income changes between -50% and +50%. These results are not robust when a smaller dataset is considered. This research is significant because few previous studies have tried determining relevant income change ranges, at which consumption changes significantly with income. The results of the study might be further analyzed to help creditors to decide the typical cash flow demands from farm expenditures and consumption, as well as which farmers are in most need of loans.

Suggested Citation

  • Durguner, Sena & Ellinger, Paul N. & Arends-Kuenning, Mary, 2007. "Effects of Changes in Income on Changes in Consumption: An Empirical Investigation for Illinois Farm Households," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9362, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea07:9362

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea07:9362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.