Is Shopping at Walmart an Inferior Good? Evidence from 1997-2010

Mandie Weinandt; Mike Allgrunn

Is Shopping at Walmart an Inferior Good? Evidence from 1997-2010

Authors

Mandie Weinandt University of South Dakota
Mike Allgrunn University of South Dakota

Keywords:

Business, Economics, Finance, Income, Walmart

Abstract

We test the relative income elasticity of shopping at Walmart and Target using quarterly data from 1997- 2010. We seek to isolate the effects of income changes by controlling for price level, retail space, and measures of time. Our findings indicate Walmart’s income elasticity, while lower than Target’s, is positive, indicating shopping at both stores is normal rather than inferior.

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Published

2016-03-01

How to Cite

Weinandt, M., & Allgrunn, M. (2016). Is Shopping at Walmart an Inferior Good? Evidence from 1997-2010. Journal of Applied Business and Economics, 18(1). Retrieved from https://articlegateway.com/index.php/JABE/article/view/830