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Capital Equipment Replacement Decisions

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  • Batterham, Robert L.
  • Fraser, K.I.
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    Abstract

    This paper reviews the literature on the optimal replacement of capital equipment, especially farm machinery. It also considers the influence of taxation and capital rationing on replacement decisions. It concludes that special taxation provisions such as accelerated depreciation and investment allowances are unlikely to greatly influence farmers' capital equipment replacement decisions in Australia.

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    File URL: http://purl.umn.edu/12533
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

    Volume (Year): 63 (1995)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:remaae:12533

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
    Phone: 0409 032 338
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    Related research

    Keywords: Farm Management;

    References

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    1. Lynne, Gary D., 1988. "Machinery Replacement, Multiple Optima, And The 1986 Tax Reform Act," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(01), July.
    2. Douglas, Robert A. & Peterson, Deborah C. & Kokic, Philip & Parameswaran, Bhamathy, 1995. "A Note on Accelerated Depreciation and Investment Allowances," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), April.
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    Cited by:
    1. Micheels, Eric T. & Katchova, Ani L. & Barry, Peter J., 2004. "Machinery Investment in Illinois: A Study Examining Existing Investment Motivations," 2004 Annual meeting, August 1-4, Denver, CO 20374, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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