Abstract
A common characterization of the 19th century Punjabi peasant is one of a myopic, extravagant person who, when given easier access to credit, eventually becomes impoverished by debt. However, the empirical support for this view is flimsy. The paper tests for excessive “extravagance” among indebted peasants using a small but remarkably detailed farm-household survey for Rohtak District in 1878. The data set offers little statistically convincing support for the historical stereotype. Estimated saving rates suggest that some peasants would have been vulnerable to recurrent drought, but no more so for those in debt. Nor did indebted households tend to have higher marginal propensities to consume. The diversity in consumption/saving behavior bore little association with indebtedness.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
