Determinants Of Investments In Non-Farm Assets By Farm Households
Off-farm investment decisions of farm households are analyzed. Farm-level data for a sample of Kansas farms observed from 1994 through 2000 are utilized. A system of censored dependent variables is estimated to investigate the factors that influence the composition of farm households' portfolios. The central question underlying the analysis is whether farm income variability influences off-farm investment decisions. Previous analyses on the determinants of non-farm investments have failed to consider the role of income variability. Our results indicate that higher farm income fluctuations increase the relevance of non-farm assets in the farm household portfolio, thus suggesting that these assets are used as farm risk management tools.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.orgEmail:
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.:
- Chavas, Jean-Paul & Pope, Rulon, 1985. "Price uncertainty and competitive firm behavior: Testable hypotheses from expected utility maximization," Journal of Economics and Business, Elsevier, vol. 37(3), pages 223-235, August.
- Hansen, Lars Peter & Singleton, Kenneth J, 1983. "Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 249-65, April.
- Gustafson, Cole R. & Chama, Sydney L., 1992. "Financial Assets Held by North Dakota Farmers," Proceedings: Proceedings: 1992 Regional Committee NC-207, September 26-29, 1992, Minneapolis/St. Paul, Minnesota 131242, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
- Monke, James D., 1997. "Do Farmers Need Tax-Deferred Savings Accounts to Help Manage Income Risk?," Agricultural Information Bulletins 33737, United States Department of Agriculture, Economic Research Service.
- Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
- J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea04:20329. 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 references are entirely missing, you can add them using this form.