Borrowing constraints and the agricultural investment decision process

Luciano Gutierrez

Agribusiness, 2001, vol. 18, issue 1, 101-114

Abstract: This paper develops a dynamic intertemporal model under the hypothesis of asymmetric information for the analysis of the rate of investment in the agricultural sector. The model stresses the importance of borrowing constraints for the investment decision of firms. Using the model we derive, following Abel and Blanchard's (1986) approach, an estimate for marginal Tobin's Q. We find that this series is positively and strongly related to the agricultural rate of investment in Italy during the period of 1960-1996. [Econ-Lit Citations: Q14, E62, E22] © 2002 Wiley Periodicals, Inc.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1002/agr.10008 Link to full text; subscription required (text/html)

Related works:
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:wly:agribz:v:18:y:2001:i:1:p:101-114

DOI: 10.1002/agr.10008

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().