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The Income And Consumption Experiences Of A Sample Of Farm Families

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  • Mullen, John D.
  • Powell, Roy A.
  • Reece, B.F.

Abstract

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.

Suggested Citation

  • Mullen, John D. & Powell, Roy A. & Reece, B.F., 1980. "The Income And Consumption Experiences Of A Sample Of Farm Families," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 1-15, December.
    • Handle: RePEc:ags:ajaeau:22905
    DOI: 10.22004/ag.econ.22905
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    References listed on IDEAS

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    1. Davis, D.C. & Mullen, John D. & Bryant, M.J., 1979. "Farmer Income and Expenditure Patterns in a Wheat-Sheep Region," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(01), pages 1-24, April.
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    Cited by:

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    2. Chen, Kevin Z. & D. Meilke, Karl & Turvey, Calum, 1999. "Income risk and farm consumption behavior," Agricultural Economics, Blackwell, vol. 20(2), pages 173-183, March.
    3. David J. Williams & Brady E. Brewer & Jessica E. Todd, 2022. "Farm households' consumption of ad hoc program payments," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1465-1481, September.
    4. O'Mara, L. Paul & Mullen, John D. & Powell, Roy A. & Reece, B.F., 1988. "The Consumption Behaviour of Farmers: a review of the evidence," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(02), pages 1-15, August.

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