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.


Issue Date:
1980-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22905
Published in:
Australian Journal of Agricultural Economics, Volume 24, Number 3
Page range:
268-282
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-24

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