Thai Household Consumption and Precautionary Saving Under Income Uncertainty : Case study Durian Farmers at Nonthaburi Province

Abstract

This paper investigates household behavior with regard to consumption and precautionary saving under income uncertainty for durian farmers in Nonthaburi Province, using both quantitative and qualitative research methods. A sample of 300 famers provides data collected by questionnaire and examined using the descriptive statistics of percentages, mean, and standard deviation as well as the inferential statistics of Pearson correlation and multiple regression analysis. The results show that durian farmers have an average income of 1,039939.66 Baht per year and average debt of 574,871.10 Baht per year. Focusing on precautionary saving behavior, durian farmers save approximately 1,000 to 5,000 Baht per month by way of bank accounts, premium saving bonds and human financial assets. In addition, they exhibit a medium level of knowledge about philosophy of Sufficiency Economy, including saving. However, no relationship is found between level of saving and education. Hence, the government should increase durian farmers’ knowledge concerning Sufficiency Economy, including saving, thus embracing improved human well-being as a developmental goal