Andersson, Hans Ramamurtie, B. Sailesh Ramaswami, Bharat
Year of Publication:
Working Paper, Federal Reserve Bank of Atlanta 95-14
Investment behavior is analyzed using a dynamic portfolio model including off-farm income. The correlation structure of off-farm income and asset returns and the ratio of off-farm income to wealth is shown to affect portfolio choice. Empirical analysis indicates that off-farm income tends to increase farm assets.