LIFETIME LEVERAGE CHOICE FOR PROPRIETARY FARMERS IN A DYNAMIC STOCHASTIC ENVIRONMENT

Robert A. Collins and Larry Karp

Journal of Agricultural and Resource Economics, 1993, vol. 18, issue 2, 14

Abstract: 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.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30962

DOI: 10.22004/ag.econ.30962

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