In this paper, we use recent demand estimation models for the KFMA dataset to identify the determinants of farm household expenditure patterns and its implications to the main street business. Comparing endogeneity adjusted and unadjusted QUAIDS model estimates, we establish that not accounting for endogeneity leads to the inconsistent demand estimates. Our results show that success of a business operating in farming communities depends on the farm characteristics of that location. We also find that some business benefits by offering the lowest possible cost for their items, while other by increasing the income level of purchasing households through efficient farm production measures.


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