IDEAS home Printed from https://ideas.repec.org/a/ags/ajaeau/22905.html
   My bibliography  Save this article

The Income And Consumption Experiences Of A Sample Of Farm Families

Author

Listed:
  • Mullen, John D.
  • Powell, Roy A.
  • Reece, B.F.

Abstract

The way in which the consumption of farm families is adjusted to fluctuations in income has important implications at the national, regional and farm levels. In this paper, hypotheses about the consumption of farm families are examined using data from 16 families in a wheat-sheep region of New South Wales for the eight-year period 1968/69 to 1975/76. The results of the study indicate that lagged effects are important in explaining consumption by farm households. It was not possible to partition these lag effects between partial adjustment and normal income influences. Estimates of the short-run (one-year) marginal propensity to consume (mpc) were quite low, ranging from 0.13 to 0.16. The best estimates of the long-run mpc ranged from 0.19 to 0.25.

Suggested Citation

  • Mullen, John D. & Powell, Roy A. & Reece, B.F., 1980. "The Income And Consumption Experiences Of A Sample Of Farm Families," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 1-15, December.
    • Handle: RePEc:ags:ajaeau:22905
    DOI: 10.22004/ag.econ.22905
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22905/files/24030268.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22905?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Davis, D.C. & Mullen, John D. & Bryant, M.J., 1979. "Farmer Income and Expenditure Patterns in a Wheat-Sheep Region," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(01), pages 1-24, April.
    2. H. W. Arndt & Burgess Cameron, 1957. "An Australian Consumption Function," The Economic Record, The Economic Society of Australia, vol. 33(64), pages 108-115, April.
    3. repec:bla:ecorec:v:48:y:1972:i:122:p:220-31 is not listed on IDEAS
    4. GirAo, J A & Tomek, W G & Mount, T D, 1974. "The Effect of Income Instability on Farmers' Consumption and Investment," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 141-149, May.
    5. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    6. Keith O. Campbell, 1958. "Some Reflections On Agricultural Investment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 2(2), pages 93-103, December.
    7. James A. MacMillan & R.M.A. Loyns, 1969. "A Cross-Section Analysis Of Farm Household Expenditures," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 17(2), pages 92-105, July.
    8. repec:bla:ecorec:v:50:y:1974:i:130:p:287-95 is not listed on IDEAS
    9. Campbell, Keith O., 1958. "Some Reflections On Agricultural Investment," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 2(2), pages 1-11, December.
    10. Battese, G E & Griffiths, W E, 1980. "On R2-Statistics for the General Linear Model with Non-Scalar Covariance Matrix," Australian Economic Papers, Wiley Blackwell, vol. 19(35), pages 343-348, December.
    11. Doran, H. E. & Griffiths, W. E., 1978. "Inconsistency of the OLS estimator of the partial adjustment-adaptive expectations model," Journal of Econometrics, Elsevier, vol. 7(2), pages 133-146, June.
    12. Fuller, Wayne A. & Battese, George E., 1974. "Estimation of linear models with crossed-error structure," Journal of Econometrics, Elsevier, vol. 2(1), pages 67-78, May.
    13. repec:bla:ecorec:v:54:y:1978:i:146:p:239-55 is not listed on IDEAS
    14. repec:bla:ecorec:v:53:y:1977:i:142&143:p:198-218 is not listed on IDEAS
    15. R. A. Powell & T. D. Mandeville, 1978. "Analysis of Sector Interactions and Stability in a Rural Region of NSW," The Economic Record, The Economic Society of Australia, vol. 54(2), pages 239-255, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Kevin Z. & D. Meilke, Karl & Turvey, Calum, 1999. "Income risk and farm consumption behavior," Agricultural Economics, Blackwell, vol. 20(2), pages 173-183, March.
    2. David J. Williams & Brady E. Brewer & Jessica E. Todd, 2022. "Farm households' consumption of ad hoc program payments," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1465-1481, September.
    3. Will Chancellor & Shiji Zhao, 2021. "Agricultural Households: An Exploratory Analysis Revisiting Financial Position and Well‐being in Australia," Economic Papers, The Economic Society of Australia, vol. 40(1), pages 14-30, March.
    4. 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), pages 1-15, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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), pages 1-15, August.
    2. Chen, Kevin Z. & D. Meilke, Karl & Turvey, Calum, 1999. "Income risk and farm consumption behavior," Agricultural Economics, Blackwell, vol. 20(2), pages 173-183, March.
    3. Lewis, Philip E.T. & Hall, Nigel H. & Savage, C.R. & Kingston, A.G., 1988. "Taxation, Cost Of Capital And Investment In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-7, April.
    4. Fisher, Brian S., 1974. "A Quarterly Model Of Agricultural Investment In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 18(1), pages 1-10, April.
    5. R. A. Powell & T. D. Mandeville, 1978. "Analysis of Sector Interactions and Stability in a Rural Region of NSW," The Economic Record, The Economic Society of Australia, vol. 54(2), pages 239-255, August.
    6. Anderson, Jock R., 1979. "Impacts of Climatic Variability in Australian Agriculture: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(03), pages 1-31, December.
    7. Carriker, Gordon L. & Featherstone, Allen M. & Schroeder, Ted C., 1989. "Analysis of Kansas Farm Household Expenditures," Staff Papers 133752, Kansas State University, Department of Agricultural Economics.
    8. Longworth, John W., 1982. "Domestic Price-Income Policies for Farmers in Relation to International Trade Policies: Exporting Country," 1982 Conference, August 24-September 2, 1982, Jakarta, Indonesia 182515, International Association of Agricultural Economists.
    9. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    10. Davidson, Bruce Robinson, 1992. "Rum Corps to IXL: Services to Pastoralists and Farmers in New South Wales, Part IV 1930-1990: Depression, War and Peace," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(03), pages 1-35, December.
    11. Chul‐Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off‐farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    12. Bunting, David, 2009. "The saving decline: Macro-facts, micro-behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 282-295, May.
    13. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    14. Grossmann, Volker, 2008. "Risky human capital investment, income distribution, and macroeconomic dynamics," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 19-42, March.
    15. Lang, Harald, 1987. "Herman Wold on Optimal Properties of Exponentially Weighted Forecasts," Working Paper Series 179, Research Institute of Industrial Economics.
    16. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    17. Sadullah Çelik & Yasemin Özerkek, 2008. "Panel cointegration analysis of consumer confidence and personal consumption in the European Union," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(2), pages 161-168, February.
    18. repec:spo:wpecon:info:hdl:2441/f0uohitsgqh8dhk9814kl7606 is not listed on IDEAS
    19. Ricardo Barradas & Ines Tomas, 2023. "Household indebtedness in the European Union countries: Going beyond the mainstream interpretation," PSL Quarterly Review, Economia civile, vol. 76(304), pages 21-49.
    20. Breaban, Adriana & van de Kuilen, Gijs & Noussair, Charles, 2016. "Prudence, Personality, Cognitive Ability and Emotional State," Other publications TiSEM 9a01a5ab-e03d-49eb-9cd7-4, Tilburg University, School of Economics and Management.
    21. Alok Bhargava, 2006. "Modelling the Health of Filipino Children," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 11, pages 153-168, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

    Consumer/Household Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22905. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.