DEBT AND LEASING IN AGRICULTURE: A QUANTILE REGRESSION APPROACH

Farzad Taheripour, Ani Katchova and Peter J. Barry

No 19636, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: While traditional finance theory suggests that leasing and debt are substitutes, some papers demonstrated the theoretical possibility of complementarity. Empirical studies indicate that both are possible. In this paper we will use the Tobit model, ordinary least squares and quantile regression techniques to study the relationship between leasing and debt in farm capital structure in Illinois. Our results indicate that leasing and debt are close to perfect substitutes and leased assets are less risky than debt-financed assets in Illinois farms. The results from the quantile regression help us to capture the effects of farm characteristics on the distribution of leased to assets ratio.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 26
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/19636/files/sp02ka02.pdf (application/pdf)

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:ags:aaea02:19636

DOI: 10.22004/ag.econ.19636

Access Statistics for this paper

More papers in 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().