 The Impact of Borrowing Constraints on Farm Households: A Life-Cycle ApproachEuropean Review of Agricultural Economics, 1995, vol. 22, issue 1, 61-86 Abstract: This paper examines the potential impact of borrowing constraints on farm households. Using an adaptation of a life-cycle model of the farm household, two types of borrowing constraints are investigated. The first type of constraint, restrictions on the ratio of total debt to farm value added, reflects the possibility that financial institutions restrict lending on the basis of current farm profitability. The second type, restrictions on the debt to asset ratio, reflects the possibility that loans must be secured against assets. These two versions of the model are analysed and then simulated for a set of Dutch dairy farms. From the results it was found that, whilst the impact of such constraints does not appear to be affected by farm size, the proportion of land owned was a factor in determining which farms were likely to be borrowing-constrained. Copyright 1995 by Oxford University Press. Date: 1995 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:22:y:1995:i:1:p:61-86 Ordering information: This journal article can be ordered from Access Statistics for this article European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.