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Propensity to Consume Farm Family Disposable Income from Separate Sources
Author(s) -
Carriker Gordon L.,
Langemeier Michael R.,
Schroeder Ted C.,
Featherstone Allen M.
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 - 10.2307/1243581
Subject(s) - liberian dollar , marginal propensity to consume , government (linguistics) , payment , farm income , business , agricultural economics , household income , economics , monetary economics , production (economics) , finance , microeconomics , geography , linguistics , philosophy , archaeology , market liquidity
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.