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Financial Flexibility in agricultural investment decisions: A discrete choice experiment

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  • Anastassiadis, Friederike
  • Liebe, Ulf
  • Mußhoff, Oliver

Abstract

Using a discrete choice experiment we examine the role of financial flexibility in agricultural investment decisions. The data is analyzed with a mixed logit model and reveals that financial flexibility is an important decision-making factor. Every third participant indicates that, compared to the criteria profitability and risk, financial flexibility is even determining his/her investment decision. Furthermore, it was possible to quantify an economic value for the financial flexibility that is significantly different from zero.

Suggested Citation

  • Anastassiadis, Friederike & Liebe, Ulf & Mußhoff, Oliver, 2015. "Financial Flexibility in agricultural investment decisions: A discrete choice experiment," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(1), pages 1-12.
    • Handle: RePEc:ags:aergaa:253690
    DOI: 10.22004/ag.econ.253690
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