Variable and Fixed Rate Loans: Determinants of Borrower Demand

Robert N. Collender

No 270471, 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Farmers and lenders continually make decisions about fixed and variable rate financing. Conditions are derived and illustrated under which risk-averse farmers will choose to borrow more under each type of financing and under which they will prefer each type of financing when debt is unconstrained or predetermined.

Keywords: Agricultural Finance; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 36
Date: 1989-07-30
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea89:270471

DOI: 10.22004/ag.econ.270471

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