EconPapers    
Economics at your fingertips  
 

Responsiveness of farm investment to price changes: An empirical study of the French crop sector

Fabienne Femenia (), Laure Latruffe () and Jean-Paul Chavas ()

No 261421, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: Understanding how farmers respond to prices can shed light into investment behavior and inform policy makers. We investigate the investment behavior of French crop farmers between 2002 and 2014, with a focus on adjustments to market prices. The analysis relies on a structural investment model derived from the maximization of farmers’ future expected profit. Our estimation results show evidence of significant changes in investment behavior over time, farmers’ investment being more responsive to output price before 2006, and to investment price from 2007. This suggests that government intervention through investment price may have positive impacts during periods of price volatility.

Keywords: Farm Management; Productivity Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2017-08-28
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/261421/files/Fe ... 0Price%20Changes.pdf (application/pdf)
http://ageconsearch.umn.edu/record/261421/files/Fe ... s.pdf?subformat=pdfa (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:eaae17:261421

DOI: 10.22004/ag.econ.261421

Access Statistics for this paper

More papers in 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-11-04
Handle: RePEc:ags:eaae17:261421