OPTIMAL CAPITAL STRUCTURE AND INCOME SUPPORT REFORM UNCERTAINTY

Carl-Johan Lagerkvist and Kent Olson

No 19694, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper investigates the extent to which an active agricultural policy directed to the return and/or the variability of return in farming that is understood and anticipated, where the political process creates parameter uncertainty and noise about the precise timing of reform, influences the capital structure at the farm level. Closed for solutions for the implied restructuring prior to the reform is derived. The empirical analyses the policy induced incentives for debt levels adjustment that may have prevailed prior to and after the 1996 Farm Bill. The empirical analysis strongly supports the theoretical analysis.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 21
Date: 2002
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19694

DOI: 10.22004/ag.econ.19694

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