Effect of Changes in the Interest Rate on the Interest Expenditure

Charles Moss and Jaclyn D. Kropp

No 360681, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: The agricultural sector in the United States is affected by a variety of policies; however, monetary policies may have a significant impact on the sector. This study examines the potential impact of these policies by estimating the effect of changes in the interest rate on borrowing and the share of interest paid to cash expenditures. The results indicate at the aggregate level interest expenditures increase by less than the increase in the interest rate.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 37
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360681

DOI: 10.22004/ag.econ.360681

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