LEVERAGE DECISIONS IN THE PRESENCE OF BANKRUPTCY LAWS

Bruce Ahrendsen and Robert N. Collender

No 259451, Department of Economics and Business - Archive from North Carolina State University, Department of Economics

Abstract: Optimal leverage is modeled with and without the truncation of wealth provided by bankruptcy. Differences in optimal leverages and. in farmers' responses to government programs are examined. Under plausible conditions some risk averse farmers demand infinite debt. Together farm programs and bankruptcy laws exacerbate agency problems in lending.

Keywords: Agricultural Finance; Financial Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 1989-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/259451/files/magr-northcarolinastate-034.pdf (application/pdf)

Related works:
Working Paper: LEVERAGE DECISIONS IN THE PRESENCE OF BANKRUPTCY LAWS (1989)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ncbuar:259451

DOI: 10.22004/ag.econ.259451

Access Statistics for this paper

More papers in Department of Economics and Business - Archive from North Carolina State University, Department of Economics
Bibliographic data for series maintained by AgEcon Search ().