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Marginal Propensity to Consume for a Sample of Kansas Farms

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  • Langemeier, Michael R.
  • Snider, Lindsey

Abstract

This paper examined the marginal propensity to consume (MPC) for a sample of Kansas farms. Sensitivity of estimated MPCs to the use of accrual net farm income, net cash farm income, and the inclusion of off-farm income was also examined. Results yielded a range of short-run MPCs from 0.011 to 0.015. Statistical tests suggested that the income coefficients used to compute short-run MPCs were not statistically different.

Suggested Citation

  • Langemeier, Michael R. & Snider, Lindsey, 2009. "Marginal Propensity to Consume for a Sample of Kansas Farms," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 45971, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:45971
    DOI: 10.22004/ag.econ.45971
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    References listed on IDEAS

    as
    1. Martin Browning & Thomas F. Crossley, 2001. "The Life-Cycle Model of Consumption and Saving," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 3-22, Summer.
    2. Michael R. Langemeier & George F. Patrick, 1990. "Farmers' Marginal Propensity to Consume: An Application to Illinois Grain Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 309-316.
    3. Gordon L. Carriker & Michael R. Langemeier & Ted C. Schroeder & Allen M. Featherstone, 1993. "Propensity to Consume Farm Family Disposable Income from Separate Sources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 739-744.
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    Cited by:

    1. Carson, Nathaniel & Langemeier, Michael, 2019. "Relationship between Cash Rent and Net Return to Land in Indiana," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2019.
    2. Protopop, Iuliia & Boehlje, Michael & Stockton, Matthew & Bradley, Lubben, 2016. "The Effect of the Timing of Farm Transfer Initiation on Terminal Wealth in the Business: Simulation Model," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236006, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural Finance; Farm Management;

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