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

Xiaohui Peng, Li Zhao, Chengyan Yue, David Ahlstrom

Research output: Contribution to journalArticle

1 Citation (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)1153-1166
Number of pages14
JournalInternational Food and Agribusiness Management Review
Volume21
Issue number8
DOIs
StatePublished - Jan 1 2018

Fingerprint

disaster recovery
agricultural subsidies
Disasters
Life Cycle Stages
China
income
Economics
farms
Economic Development
economic development
households
sampling
household consumption
Farms
Income
Life cycle hypothesis
Subsidies
Disaster relief
Household consumption
Policy implications

Keywords

  • Agricultural subsidy
  • Behavioral life cycle hypothesis
  • Disaster relief
  • Farm household consumption
  • Marginal propensity to consume

Cite this

Are different income sources fungible? The effects of agricultural subsidy and disaster relief on household consumption in China. / Peng, Xiaohui; Zhao, Li; Yue, Chengyan; Ahlstrom, David.

In: International Food and Agribusiness Management Review, Vol. 21, No. 8, 01.01.2018, p. 1153-1166.

Research output: Contribution to journalArticle

@article{2b0c47b125a544b6a3462429d9d4eb4a,
title = "Are different income sources fungible? The effects of agricultural subsidy and disaster relief on household consumption in China",
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 = "Agricultural subsidy, Behavioral life cycle hypothesis, Disaster relief, Farm household consumption, Marginal propensity to consume",
author = "Xiaohui Peng and Li Zhao and Chengyan Yue and David Ahlstrom",
year = "2018",
month = "1",
day = "1",
doi = "10.22434/IFAMR2018.0011",
language = "English (US)",
volume = "21",
pages = "1153--1166",
journal = "International Food and Agribusiness Management Review",
issn = "1096-7508",
publisher = "International Food and Agribusiness Management Association",
number = "8",

}

TY - JOUR

T1 - Are different income sources fungible? The effects of agricultural subsidy and disaster relief on household consumption in China

AU - Peng, Xiaohui

AU - Zhao, Li

AU - Yue, Chengyan

AU - Ahlstrom, David

PY - 2018/1/1

Y1 - 2018/1/1

N2 - 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.

AB - 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.

KW - Agricultural subsidy

KW - Behavioral life cycle hypothesis

KW - Disaster relief

KW - Farm household consumption

KW - Marginal propensity to consume

UR - http://www.scopus.com/inward/record.url?scp=85059632127&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85059632127&partnerID=8YFLogxK

U2 - 10.22434/IFAMR2018.0011

DO - 10.22434/IFAMR2018.0011

M3 - Article

AN - SCOPUS:85059632127

VL - 21

SP - 1153

EP - 1166

JO - International Food and Agribusiness Management Review

JF - International Food and Agribusiness Management Review

SN - 1096-7508

IS - 8

ER -