Are different income sources fungible? The effects of agricultural subsidy and disaster relief on household consumption in China

Xiaohui Peng, Li Zhao, Chengyan Yue and David Ahlstrom

International Food and Agribusiness Management Review, 2018, vol. 21, issue 8

Abstract: This paper uses panel data from a sample of farm households in the northeastern China to examine the non-fungibility of different income sources. The results show the private transfer income has a high and significant impact on household consumption while agricultural subsidy and disaster relief have insignificant impacts. Empirical findings prove that the Behavioral Life Cycle Hypothesis is more practical than the Life Cycle Hypothesis. Moreover, they provide important macro policy implications as for how to stimulate farm consumption and expand domestic demand and encourage economic growth.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/284913/files/Xiaohui%20Peng.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:284913

DOI: 10.22004/ag.econ.284913

Access Statistics for this article

More articles in International Food and Agribusiness Management Review from International Food and Agribusiness Management Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().