Agricultural Precautionary Wealth

Farrell E. Jensen and Rulon D. Pope

Journal of Agricultural and Resource Economics, 2004, vol. 29, issue 01, 14

Abstract: Using panel data, the relationship between income uncertainty and the stock of wealth through precautionary saving is examined. Evidence from Kansas data is consistent with the precautionary saving motive in that farm households facing greater uncertainty in income maintain larger stocks of wealth in order to smooth consumption. These results are found by regressing net worth against measures of permanent income (life-cycle income), measures of uncertainty, and demographic variables.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:31146

DOI: 10.22004/ag.econ.31146

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