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Measuring precautionary wealth using cross-sectional data: the case of farm households

  • Ashok Mishra

    ()

  • Hiroki Uematsu
  • J. Matthew Fannin

This study models and investigates the presence of precautionary wealth among farm households, something few studies have attempted. Using pooled farm-level data, we find that self-employed farm households accumulate more wealth. Precautionary savings is about 8% of total household wealth. In addition, we find that age, education, occupation, and operation size are important factors influencing wealth accumulation by US farm households. Copyright Springer Science+Business Media, LLC 2013

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File URL: http://hdl.handle.net/10.1007/s11150-011-9139-0
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Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 11 (2013)
Issue (Month): 1 (March)
Pages: 131-141

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Handle: RePEc:kap:reveho:v:11:y:2013:i:1:p:131-141
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=109451

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  4. Ashok K. Mishra & Hung-Hao Chang, 2009. "Factors affecting precautionary savings of self-employed farm households," Agricultural Finance Review, Emerald Group Publishing, vol. 69(3), pages 300-313, November.
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  8. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economics Reports 33967, United States Department of Agriculture, Economic Research Service.
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  13. Barry K. Goodwin & Ashok K. Mishra & Fran�ois N. Ortalo-Magné, 2003. "What's Wrong with Our Models of Agricultural Land Values?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 744-752.
  14. Barry K. Goodwin & Ashok K. Mishra, 2004. "Farming Efficiency and the Determinants of Multiple Job Holding by Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 722-729.
  15. Lusardi, Annamaria, 1997. "Precautionary saving and subjective earnings variance," Economics Letters, Elsevier, vol. 57(3), pages 319-326, December.
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  18. Musgrove, Philip, 1979. "Permanent Household Income and Consumption in Urban South America," American Economic Review, American Economic Association, vol. 69(3), pages 355-68, June.
  19. Mishra, Ashok K. & El-Osta, Hisham S., 2005. "Decomposition of Variability in Farm Household Assets and Debt," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 23(2).
  20. Bhalla, Surjit S, 1980. "The Measurement of Permanent Income and Its Application to Savings Behavior," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 722-44, August.
  21. Carroll, Christopher D. & Samwick, Andrew A., 1997. "The nature of precautionary wealth," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 41-71, September.
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  23. Wolpin, Kenneth I, 1982. "A New Test of the Permanent Income Hypothesis: The Impact of Weather on the Income and Consumption of Farm Households in India," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 583-94, October.
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