Location of Repository

OPTIMAL CAPITAL STRUCTURE AND INCOME SUPPORT REFORM UNCERTAINTY

By Carl Johan Lagerkvist and Kent D. Olson

Abstract

This paper investigates the extent to which an active agricultural policy directed to the return and/or the variability of return in farming that is understood and anticipated, where the political process creates parameter uncertainty and noise about the precise timing of reform, influences the capital structure at the farm level. Closed for solutions for the implied restructuring prior to the reform is derived. The empirical analyses the policy induced incentives for debt levels adjustment that may have prevailed prior to and after the 1996 Farm Bill. The empirical analysis strongly supports the theoretical analysis.Financial Economics,

OAI identifier:
Downloaded from http://purl.umn.edu/19694

Suggested articles

Preview

Citations

  1. (1996). Agricultural economics in the policy arena”. Review of Agricultural Economics
  2. (1993). Agricultural investment and internal cash flow variables.”
  3. An empirical analysis of optimal farm capital structure decisions.”
  4. (2001). Asymmetric information, capital structure and agricultural investment”. Paper presented at the Annual Meeting of the American Agricultural Economics Association,
  5. Capital market imperfections before and after financial liberalization: An Euler equation approach to panel data for Ecuadorian firms.”
  6. (1984). Corporate Financing and Investment Decision When Firms Have Information that Investors Do Not Have”.
  7. (1996). Debt and the marginal tax rate,
  8. (1990). Do taxes affect corporate financing decisions?”,
  9. (1998). Dynamic panel data estimation using DPD98 for GAUSS: A guide for users.”
  10. (1996). FAIR Act Frames Farm Policy For 7 Years”. Agricultural Outlook Supplement.
  11. (2001). Financing Investment”. American Economic Review,
  12. Internal net worth and the investment process: an application to U.
  13. (1992). liquidity constraints and corporate investment: evidence from panel data”.
  14. On comparing farm record association members to the farm population.”
  15. Optimal Leverage with Risk Aversion: Empirical Evidence”.
  16. (1999). Panel Data estimation using DPD for Ox.
  17. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations.”
  18. Tax policy uncertainty and corporate investment - A theory of tax-induced investment spurts”.
  19. (1972). The Effects of Price and Cost Uncertainty on Investment”.
  20. The impact of borrowing constraints on farm households: A life-cycle approach.”
  21. (1988). The Theoretical Effects of Farm

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.