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Accounting For The Importance Of Nonfarm Income On Farm Family Income Inequality In New York

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  • Boisvert, Richard N.
  • Ranney, Christine K.
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    Abstract

    As the proportion of farm family income due to nonfarm sources continues to grow nationally, it is important to understand how farm families in various regions or states are affected. This paper develops a better understanding of the contribution of income from nonfarm sources to the level and distribution of income among farm families in New York. In analyzing income distribution, the Gini ratio is decomposed to determine the effects of marginal changes in income by source to overall inequality. The results are compared with the simulated changes in income inequality due to changes in income by source as measured by an "adjusted" Gini ratio which accounts specifically for negative farm incomes. Differences in the policy implications from both procedures are compared. The relationships among sources of income and policy implications can be brought into sharper focus by examining both measures.

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    File URL: http://purl.umn.edu/28965
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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Northeastern Journal of Agricultural and Resource Economics.

    Volume (Year): 19 (1990)
    Issue (Month): 1 (April)
    Pages:

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    Handle: RePEc:ags:nejare:28965

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    Web page: http://www.narea.org/
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    Keywords: Agricultural Finance;

    References

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    1. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
    2. Stark, Oded & Yitzhaki, Shlomo, 1982. "Migration, growth, distribution and welfare," Economics Letters, Elsevier, vol. 10(3-4), pages 243-249.
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    Cited by:
    1. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    2. Boisvert, Richard N. & Ranney, Christine K., 1991. "The Budgetary Implications of Reducing U.S. Income Inequality Through Income Transfer Programs," Research Bulletins 123104, Cornell University, Department of Applied Economics and Management.
    3. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Central and Eastern Europe, LeibĀ­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 65, number 65.
    4. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.
    5. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.

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