Differences in Consumption Patterns of Farm and Nonfarm Households in the United States

This article examines the hypothesis of differential consumption patterns in farm and nonfarm households, using the 1960–1961 BLS and USDA survey of consumer expenditure data. Comparisons were based on Engel curves for major consumer categories of consumption. Parameters of Engel curves were derived by OLS and TSLS. The results of the comparisons clearly indicate that consumption patterns differ significantly in the two households for the United States as a whole, although the differences are not as marked on a regional basis. The level and stability of income are not important factors contributing to the differences.