Agricultural Precautionary Wealth

Using panel data, the relationship between income uncertainty and the stock of wealth through precautionary saving is examined. Evidence from Kansas data is consistent with the precautionary saving motive in that farm households facing greater uncertainty in income maintain larger stocks of wealth in order to smooth consumption. These results are found by regressing net worth against measures of permanent income (life-cycle income), measures of uncertainty, and demographic variables.


Issue Date:
2004-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31146
Published in:
Journal of Agricultural and Resource Economics, Volume 29, Number 1
Page range:
17-30
Total Pages:
14




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

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