The Effects of Interest Rates on Agricultural Machinery Investment

Author

Michael LeBlanc and James Hrubovcak

Agricultural Economics Research, 1985, issue 3

Abstract: Changes in real interest rates may affect the rate of adjustment of machinery to optimal levels This finding results from the development and application of a theoretically consistent analytical framework for examining agricultural investment 10 machinery Results from duality theory on restricted variable profit functions are incorporated into a longrun dynamic optimization framework where input use is affected by external adjustment costs

Keywords: Agricultural investment; adjustment costs; cost of capital; Agribusiness; Agricultural Finance; Production Economics (search for similar items in EconPapers)
Date: 1985
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