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 language||English (US)|
|Number of pages||14|
|Journal||International Food and Agribusiness Management Review|
|State||Published - 2018|
Bibliographical noteFunding Information:
This paper is supported with the funding from Natural Science Foundation of China (Numbers 71473165, 71333010, 71773076, 71473163, and 71673186), the National Planning Office of Philosophy and Social Science (No. 14CJY082 and 15CGL008) and the Key Project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province (No. 2017ZDIXM106). We also thank the guidance from Professor Qinghua Shi at Shanghai Jiao Tong University.
© 2018 Peng et al.
- Agricultural subsidy
- Behavioral life cycle hypothesis
- Disaster relief
- Farm household consumption
- Marginal propensity to consume