The Consumption Behaviour of Farmers: a review of the evidence
Over recent years there has been marked instability in incomes earned from farming. The instability, which affects the economy generally, is transmitted partly through the consumption spending of farmers. A conventional view of the short-run marginal propensity to consume of farmers, supported by some analyses of aggregate data, is that it is zero. It is argued that this view is implausible on theoretical grounds, that the analysis giving rise to this view used aggregate data which contained serious flaws, and that evidence from micro-studies and other macro level analyses present a more realistic assessment that the short-run mpc of farmers is not zero but likely to be lower than that of non-farmers. A non-zero mpc has implications for how the farm sector interacts with the rest of the economy and is incorporated in models of the economy.
Volume (Year): 56 (1988)
Issue (Month): 02 (August)
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. W. Arndt & Burgess Cameron, 1957. "An Australian Consumption Function," The Economic Record, The Economic Society of Australia, vol. 33(64), pages 108-115, 04.
- John D. Mullen & Roy A. Powell & B.F. Reece, 1980. "The Income And Consumption Experiences Of A Sample Of Farm Families," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 268-282, December.
- Ouliaris, Sam, 1981. "Household Saving and the Rate of Interest," The Economic Record, The Economic Society of Australia, vol. 57(158), pages 205-214, September.
- Smyth, David J & McMahon, Patrick C, 1972. "The Australian Short-Run Consumption Function," The Economic Record, The Economic Society of Australia, vol. 48(122), pages 220-231, June.
- 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(03), December.
- Freebairn, J W, 1977. "Inflation and Stability of the Household Consumption-Savings Function," The Economic Record, The Economic Society of Australia, vol. 53(142&143), pages 198-218, June-Sept.
- Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
- Rutledge, D J S & Madden, G M, 1974. "The Australian Short-run Consumption Function: A Comment," The Economic Record, The Economic Society of Australia, vol. 50(130), pages 287-295, June.
- Campbell, Keith O., 1958. "Some Reflections On Agricultural Investment," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 2(02), December.
- J. Hirshleifer, 1958. "On the Theory of Optimal Investment Decision," Journal of Political Economy, University of Chicago Press, vol. 66, pages 329-329.
When requesting a correction, please mention this item's handle: RePEc:ags:remaae:12552. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.