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European Review of Agricultural Economics 2005 32(3):393-420; doi:10.1093/eurrag/jbi014
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Right arrow D12 - Consumer Economics: Empirical Analysis
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2005; all rights reserved. For permissions, please email: journals.permissions{at}oupjournals.org

The role of households in sustaining rural economies: a structural path analysis

Deborah Roberts

University of Aberdeen Business School, Aberdeen, UK

Corresponding author: Deborah Roberts, Arkleton Institute of Rural Development Research, University of Aberdeen Business School, Edward Wright Building, Aberdeen AB24 3QY, UK. Telephone: +44 (0) 1224 273690. Fax: +44 (0) 1224 27 2181. Email: deb.roberts{at}abdn.ac.uk

Summary

Rural households have become more diverse in terms of the geographic origin of their income and their spatial spending patterns. As a consequence, the economic well being of rural businesses and that of rural residents are less interdependent than in the past. This raises questions about the sustainability of rural economies and their vulnerability to external influences. The structural path approach is used to investigate the role played by different types of household in transmitting economic influence in the Western Isles region of Scotland. Households with children play the most significant role in connecting the local economic system. It is argued that structural path analysis can be used to provide policy relevant information, complementary to that gained from more conventional social accounting matrix multiplier decomposition techniques.

Keywords: household, structural path analysis, multiplier decomposition, rural development, social accounting matrix, R11, R15


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