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What Did They Do with the Money? An Analysis of Tobacco Buyout Recipients’ Expenditure Choices

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Author Info

  • Marshall, Maria I.
  • Pushkarskaya, Helen N.

Abstract

There are many expenditure options available to farmers who received a tobacco buyout check. A multinomial probit model is used to analyze how farmer, business, and household characteristics influence the choice of expenditure option. Results of the study show that farmers tend to use the tobacco buyout payments as a special income account which they spend in a focused manner, and their expenditure choices vary by gender and by age groups. Findings also reveal that farmers who plan to stay in tobacco production are more likely to invest in new or existing on-farm activities.

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File URL: http://purl.umn.edu/90641
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Bibliographic Info

Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.

Volume (Year): 26 (2008)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:jloagb:90641

Contact details of provider:
Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
Web page: http://www.agecon.uga.edu/~jab/
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Related research

Keywords: defensive avoidance; expenditure choices; mental accounting; multinomial probit; tobacco buyout; Agribusiness; Crop Production/Industries; Financial Economics;

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Cited by:
  1. Helen Pushkarskaya & Maria Marshall, 2010. "Family Structure, Policy Shocks, and Family Business Adjustment Choices," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 414-426, December.

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