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The role of sources of income and investment opportunity in rural savings (英语)

An investigation of the effect that sources of income and investment opportunities have on savings behavior of farm households in rural India was designed to use panel data from agricultural years 1968-1969, 1969-1970, and 1970-1971 to identify permanent and transitory components of a household's income. The propensity to save out of nonagricultural income was higher than the propensity to save out of agricultural income. This result is unexpected if one presumes that agricultural incomes reflect entrepreneurial income, investment opportunities, and control over assets. However, the permanent income hypothesis offers an alternative explanation for the observed result. Specifically, marginal propensity to save (MPS) out of nonagricultural income is higher because this income has a larger transitory element. Analysis of the theoretical relationship between savings and investment opportunities indicates that savings rates could either increase or decrease with an increase in these opportunities. Statistical data are included. 29 references.

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