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Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?

Author

Listed:
  • Andersson, Hans
  • Ramaswami, Bharat
  • Moss, Charles B.
  • Erickson, Kenneth W.
  • Hallahan, Charles B.
  • Nehring, Richard F.

Abstract

Off-farm work improves and reduces the riskiness of household income. Theoretical analyses reveal that the level and riskiness of off-farm income affect demand for farm/nonfarm investments. A two-limit Tobit model is estimated using ARMS data for 1996-2003. The impact on investment behaviour is evaluated.

Suggested Citation

  • Andersson, Hans & Ramaswami, Bharat & Moss, Charles B. & Erickson, Kenneth W. & Hallahan, Charles B. & Nehring, Richard F., 2005. "Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?," 2005 Annual meeting, July 24-27, Providence, RI 19480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19480
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    References listed on IDEAS

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    Cited by:

    1. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2009. "Facing decoupling: use of payments and investment reaction to decoupling in the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51724, International Association of Agricultural Economists.
    2. Lefebvre, Marianne & Gomez y Paloma, Sergio & Viaggi, Davide, 2014. "EU farmers' intentions to invest in 2014-2020: complementarity between asset classes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182737, European Association of Agricultural Economists.

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    Keywords

    Farm Management;

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