DEBT DEPRECIATION, CONGLOMERATION, AND CREDIT CONSTRAINTS: EVIDENCE FROM CATTLE CYCLES

Abstract

We search for evidence consistent with the notion that endogenous credit constraints play a role in cattle cycles. Beef cow inventories are found to be more sensitive to credit constraints during periods of falling than rising asset values. Inventories of heifer replacements exhibit only weak sensitivity to credit constraints during periods of falling asset values.Financial Economics, Livestock Production/Industries,