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Off-farm income and risk reduction in agriculture: when does it matter?

Author

Listed:
  • Hans Andersson
  • Buddhavarapu Sailesh Ramamurtie
  • Bharat Ramaswami

Abstract

Investment behavior is analyzed using a dynamic portfolio model including off-farm income. The correlation structure of off-farm income and asset returns and the ratio of off-farm income to wealth is shown to affect portfolio choice. Empirical analysis indicates that off-farm income tends to increase farm assets.

Suggested Citation

  • Hans Andersson & Buddhavarapu Sailesh Ramamurtie & Bharat Ramaswami, 1995. "Off-farm income and risk reduction in agriculture: when does it matter?," FRB Atlanta Working Paper 95-14, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:95-14
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    References listed on IDEAS

    as
    1. Ahearn, Mary & Johnson, Jim & Strickland, Roger, 1985. "The Distribution Of Income And Wealth Of Farm Operator Households," 1985 Annual Meeting, August 4-7, Ames, Iowa 278657, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. French, Kenneth R & Poterba, James M, 1991. "Investor Diversification and International Equity Markets," American Economic Review, American Economic Association, vol. 81(2), pages 222-226, May.
    3. Mary Ahearn & Jim Johnson & Roger Strickland, 1985. "The Distribution of Income and Wealth of Farm Operator Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1087-1094.
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    Keywords

    Agriculture; Farm income; Wages;
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