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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...
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