Agricultural Precautionary Wealth

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 i...

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Bibliographic Details
Main Authors: Farrell E. Jensen, Rulon D. Pope
Format: Article
Language:English
Published: Western Agricultural Economics Association 2004-04-01
Series:Journal of Agricultural and Resource Economics
Subjects:
Online Access:https://ageconsearch.umn.edu/record/31146
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spelling doaj-c40033956a714d91989c64b9006c672e2020-11-25T02:42:33ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852004-04-01291173010.22004/ag.econ.3114631146Agricultural Precautionary WealthFarrell E. JensenRulon D. PopeUsing 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.https://ageconsearch.umn.edu/record/31146precautionary savingprecautionary wealthrisk
collection DOAJ
language English
format Article
sources DOAJ
author Farrell E. Jensen
Rulon D. Pope
spellingShingle Farrell E. Jensen
Rulon D. Pope
Agricultural Precautionary Wealth
Journal of Agricultural and Resource Economics
precautionary saving
precautionary wealth
risk
author_facet Farrell E. Jensen
Rulon D. Pope
author_sort Farrell E. Jensen
title Agricultural Precautionary Wealth
title_short Agricultural Precautionary Wealth
title_full Agricultural Precautionary Wealth
title_fullStr Agricultural Precautionary Wealth
title_full_unstemmed Agricultural Precautionary Wealth
title_sort agricultural precautionary wealth
publisher Western Agricultural Economics Association
series Journal of Agricultural and Resource Economics
issn 1068-5502
2327-8285
publishDate 2004-04-01
description 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.
topic precautionary saving
precautionary wealth
risk
url https://ageconsearch.umn.edu/record/31146
work_keys_str_mv AT farrellejensen agriculturalprecautionarywealth
AT rulondpope agriculturalprecautionarywealth
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