Propensity to Consume Farm Family Disposable Income from Separate Sources
1993
Carriker, Gordon L. | Langemeier, Michael R. | Schroeder, Ted C. | Featherstone, Allen M.
Farm family disposable income is generated from farm operations, off‐farm sources, and government payments. If these three income components are fungible (a dollar from one source is a perfect substitute for a dollar from another source), then the propensities to consume each should be the same. This study examines the farm family propensity to consume from separate income sources. Results indicate that the propensity to consume off‐farm income and government payments is higher than the propensity to consume farm income.
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