Dynamics of income, wealth and capital in Norwegian farm household accounts: A state-space model
AbstractFeedbacks between on-farm and off-farm activities are analyzed with a state-space model over a panel of farm household accounts. We discover significant positive effects of farm capital both on farm income and on wage labor income. The latter effect is interpreted as wage labor partly paying the debt incurred by investments in farm capital. Significant positive effects on farm capital from wealth - indicating credit rationing or an immediate willingness to pay for farm investments - are also discovered. The wealth effect on farm income is also significantly positive. By and large - at least for the household for which the results are estimated, and for the model applied - Fishers separation theorem is rejected.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44461.
Date of creation: 2008
Date of revision:
farm households; finance; investment; Agricultural and Food Policy; Consumer/Household Economics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
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