The Effect of Usage and Size on Tractor Depreciation

Gregory Perry, Ahmet Bayaner and Clair J. Nixon

American Journal of Agricultural Economics, 1990, vol. 72, issue 2, 317-325

Abstract: An econometric model was estimated to explain prices for tractors sold at auction. Tractor age, hours of use, size, and condition were statistically significant explanatory variables. Real tractor depreciation most closely approximated a sum-of-the-years digits pattern. Tractors sold at consignment and bankruptcy auctions brought a lower price than tractors sold by retiring farmers. High levels of usage did not greatly reduce tractor value, but tractors with low annual usage brought substantial premiums in the auction market.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:72:y:1990:i:2:p:317-325.

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