Incentives for Machinery Investment

Joleen Hadrich, Ryan Larsen () and Frayne Olson

No 124897, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: Machinery investment directly effects agricultural production efficiency and profitability. Machinery investment decisions are a function of tax policy, financial, and structural characteristics. This study uses a double hurdle model to determine the factors that affect the decision to purchase machinery as well as the intensity of the machinery purchase. Results indicate that depreciation expense, type of farm, experience, and tax policy are significant determinants in the decision to purchase machinery and the level of machinery purchased.

Keywords: Agribusiness; Productivity Analysis (search for similar items in EconPapers)
Pages: 15
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124897

DOI: 10.22004/ag.econ.124897

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