LIFETIME LEVERAGE CHOICE FOR PROPRIETARY FARMERS IN A DYNAMIC STOCHASTIC ENVIRONMENT

This article reviews various models that may be used to explain optimal leverage choice for the proprietary farmer in a stochastic dynamic environment and develops a new model that highlights the risk of failure rather than the usual concept of risk as the variability of wealth. The model suggests that in addition to the usual factors, farm financial leverage is affected by age, wealth, and the opportunity cost of farming.

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Year of publication:	1993
Authors:	Collins, Robert A. ; Karp, Larry S.
Published in:	Journal of Agricultural and Resource Economics. - Western Agricultural Economics Association - WAEA. - Vol. 18.1993, 02
Publisher:	Western Agricultural Economics Association - WAEA
Subject:	Farm Management

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005805452