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THE INCOME AND CONSUMPTION EXPERIENCES OF A SAMPLE OF FARM FAMILIES*

THE INCOME AND CONSUMPTION EXPERIENCES OF A SAMPLE OF FARM FAMILIES* The way in which the consumption of farm families is adjusted to fluctuations in income has important implications at the national, regional and farm levels. In this paper, hypotheses about the consumption of farm families are examined using data from 16 families in a wheat‐sheep region of New South Wales for the eight‐year period 1968/69 to 1975/76. The results of the study indicate that lagged effects are important in explaining consumption by farm households. It was not possible to partition these lag effects between partial adjustment and normal income influences. Estimates of the short‐run (one‐year) marginal propensity to consume (mpc) were quite low, ranging from 0.13 to 0.16. The best estimates of the long‐run mpc ranged from 0.19 to 0.25. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Australian Journal of Agricultural Resource Economics Wiley

THE INCOME AND CONSUMPTION EXPERIENCES OF A SAMPLE OF FARM FAMILIES*

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Publisher
Wiley
Copyright
Copyright © 1980 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1364-985X
eISSN
1467-8489
DOI
10.1111/j.1467-8489.1980.tb00582.x
Publisher site
See Article on Publisher Site

Abstract

The way in which the consumption of farm families is adjusted to fluctuations in income has important implications at the national, regional and farm levels. In this paper, hypotheses about the consumption of farm families are examined using data from 16 families in a wheat‐sheep region of New South Wales for the eight‐year period 1968/69 to 1975/76. The results of the study indicate that lagged effects are important in explaining consumption by farm households. It was not possible to partition these lag effects between partial adjustment and normal income influences. Estimates of the short‐run (one‐year) marginal propensity to consume (mpc) were quite low, ranging from 0.13 to 0.16. The best estimates of the long‐run mpc ranged from 0.19 to 0.25.

Journal

The Australian Journal of Agricultural Resource EconomicsWiley

Published: Dec 1, 1980

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