Accepted 12th April, 2019.


This study was conducted to analyze the rural household economy in terms of income, expenditures and investment patterns.  The unit of analysis of the study is the cooperator-household in the MMSU-DOST-Science and Technology Enterprise Assistance Mechanism-Municipal Science and Technology Application Program (STEAM-MSTAP) from 2003-2008.  The study unveiled a simple pattern of the rural household economy, where the bulk of income comes from the salary or wages although agriculture remains to be the primary employment.  The true scenario is that income from agriculture is so low, hence, other sources of income become a necessity.  As to   expenditure, the  pattern is strictly income-based.  Expenditures are limited within the real income generated and that the bulk goes to basic household necessities and utilities. With a real income-dependent expenditure pattern, the consequence is an investment pattern that is expenditure-and savings-dependent.  Thus, investment is rather low.  Based on the correlation analysis, 16 intra – and extra – household variables are found to be correlated with income, expenditure and investment patterns. In the regression analysis, the income, expenditure and investment patterns are predicted by both the intra – household and extra-household factors. When disaggregated, income is predicted by employment and risk – taking while expenditure is predicted by accessibility to health services.  Investment pattern is predicted by employment, information seeking, and accessibility to education services. In the final analysis, to comprehend the economy of the rural households, a tested  model was conceptualized depicted as the Limited-Restricted-Constricted (LRC)  model.  This is a continuum beginning with limited income from low paying employment and moderate risk-taking ability leading to restricted expenditures and savings due to limited income, the bulk of which goes to basic survival needs.  The outcome is a constricted investment since a small amount is left compounded by the limited information and access to educational opportunities. 


Keywords: rural household economy, income, expenditure, investment patterns, STEAM-MSTAP cooperators