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Impact of Income and Different Generation Cohorts on Nursery Products and Landscaping Project Spending

Published online by Cambridge University Press:  26 January 2015

Lu Jin ,
Michael K. Wohlgenant  and
Charles D. Safley
Lu Jin
Affiliation:
Department of Economics, North Carolina State University, Raleigh, North Carolina
Michael K. Wohlgenant
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, North Carolina
Charles D. Safley
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, North Carolina
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Extract

Socioeconomic factors influencing consumer demand for nursery products and landscape projects were investigated using consumer survey data collected from North Carolina in 2008. Tobit models were estimated for censored dependent variables, budget expenditure shares on nursery products, and landscape spending. The most significant factors influencing the share of income spent on nursery products were age and household income. The elderly and baby boomers tend to spend less on bedding plants, perennials, and outdoor hardscapes than Generations X and Y. The income elasticities suggest that the amount spent on outdoor living projects is sensitive to changes in household income, whereas spending in vegetable plants and chemicals is less responsive to income.

Keywords

nursery productsexpendituresdemandTobitR51R58021023RHR38
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 45 , Issue 1 , February 2013 , pp. 65 - 77
Copyright
Copyright © Southern Agricultural Economics Association 2013

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