The Propensity to Consume Income from Different Sources and Implications for Saving: An Application to Norwegian Farm Households
Traditionally, farm households have relatively high saving and low marginal propensity to consume (MPC). In the last decades, this seems to have changed. To investigate these matters, a dynamic consumption model is estimated using a GMM-system estimator and a panel of 258 Norwegian farm households followed from 1976-1997. The main findings are that the MPC of farm income is lower than for off-farm income and that average MPC is low but increasing over time in these households. This may imply that some of the observed reduction in farm saving is explained by reduced need for precautionary saving.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Web page: http://agadjust.aers.psu.edu/|
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.:
- Chen, Kevin Z. & D. Meilke, Karl & Turvey, Calum, 1999.
"Income risk and farm consumption behavior,"
Blackwell, vol. 20(2), pages 173-183, March.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Martin Browning & Annamaria Lusardi, 1995.
"Household Saving: Micro Theories and Micro Facts,"
Department of Economics Working Papers
1995-02, McMaster University.
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Miles, David, 1997. "A Household Level Study of the Determinants of Incomes and Consumption," Economic Journal, Royal Economic Society, vol. 107(440), pages 1-25, January.
- O'Mara, L. Paul & Mullen, John D. & Powell, Roy A. & Reece, B.F., 1988. "The Consumption Behaviour of Farmers: a review of the evidence," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(02), August.
- Knut A. Magnussen, 1994. "Precautionary Saving and Old-Age Pensions," Discussion Papers 108, Statistics Norway, Research Department.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
When requesting a correction, please mention this item's handle: RePEc:ags:iapr02:15716. 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.