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, D
N1 - Publisher Copyright:
© 2018 Peng et al.
PY - 2018
Y1 - 2018
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
U2 - 10.22434/IFAMR2018.0011
DO - 10.22434/IFAMR2018.0011
M3 - Article
VL - 21
SP - 1153
EP - 1166
JO - International Food and Agribusiness Management Review
JF - International Food and Agribusiness Management Review
IS - 8
ER -
