IDEAS home Printed from https://ideas.repec.org/a/icf/icfjfe/v05y2007i1p43-60.html
   My bibliography  Save this article

Savings Behavior of Rural Farm Households: A Case Study of Coastal Andhra Pradesh

Author

Listed:
  • CH Paramaiah
  • S K V S Raju

Abstract

This paper examines the determinants of rural farm households’ savings behavior in the coastal districts of Andhra Pradesh. This study divides the formulation of models into two groups; an analysis of household saving behavior mainly based on the formulations using the Absolute Income Hypothesis; and testing of the Permanent Income Hypothesis and Normal Wealth Hypothesis. The results show that among different farm size groups, the big farm households saved 81% of their transitory income, while the marginal farm households saved only 64% of their transitory income. The results indicate that there is no direct relationship between the size of the farm and the proportion of savings out of the transitory income. A comparison of the estimated results for the study area—of the developed West Godavari district, moderately developed Srikakulam district, and the developing Prakasam district—indicate that the normal wealth formulation is neither superior nor inferior to the current wealth formulation in terms of predicting the saving behavior of the households.

Suggested Citation

  • CH Paramaiah & S K V S Raju, 2007. "Savings Behavior of Rural Farm Households: A Case Study of Coastal Andhra Pradesh," The IUP Journal of Financial Economics, IUP Publications, vol. 0(1), pages 43-60, March.
    • Handle: RePEc:icf:icfjfe:v:05:y:2007:i:1:p:43-60
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:05:y:2007:i:1:p:43-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.