In this article a generalised model for calculating the required real rate on capital and the effects of fiscal allowances for the agricultural firm is derived. An empirical illustration is presented for farms in southern and middle Sweden during 1973-1993. This study supports the observation...

In this paper a principal-agent model is used to examine the optimal contracting problem of a large processor situated in a geographically limited area. The model is an extension of Holthausen's result (1979). The model design considers various degrees of price-risk exposure for raw material and...