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Farm Consumption and Liquidity Constraints
Author(s) -
Langemeier Michael R.,
Patrick George F.
Publication year - 1993
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242932
Subject(s) - nonfarm payrolls , market liquidity , consumption (sociology) , economics , contrast (vision) , life cycle hypothesis , econometrics , agriculture , agricultural economics , agricultural science , monetary economics , macroeconomics , geography , computer science , social science , environmental science , archaeology , artificial intelligence , sociology
This study examines whether farm family consumption is liquidity‐constrained. Results, using 1976 to 1990 data for groups of Illinois and Kansas farms, indicate that consumption behavior is not liquidity‐constrained. Analysis of 207 Kansas farms in 1989 and 1990 provides similar results. These results are in contrast to findings for nonfarm families, and support the validity of using the life cycle‐permanent income hypothesis for farm level modeling and analysis.