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A Comparative Analysis Of Agricultural Tractor Investment Models

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  • David Vanzetti
  • John C. Quiggin

Abstract

An implicit rental price approach is used to analyse the determinants of farm tractor investment at the aggregate level. Three models, based on different assumed factor substitutabilities, are compared. Variations in the rental price of tractors appear to have less effect on demand than variations in factors affecting the profitability of the cropping enterprise as a whole. The implications for forecasting and for policy instruments, such as the investment allowance, are discussed.
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  • David Vanzetti & John C. Quiggin, 1985. "A Comparative Analysis Of Agricultural Tractor Investment Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 29(2), pages 122-141, August.
    • Handle: RePEc:bla:ajarec:v:29:y:1985:i:2:p:122-141
    DOI: j.1467-8489.1985.tb00652.x
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    References listed on IDEAS

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    1. Kingwell, Ross S., 1996. "On-Farm Factors Influencing Investment In Crop Sowing Machinery," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-14, December.
    2. D. N. Cooper, 1994. "Net Investment In Agricultural Tractors," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 339-350, September.
    3. Lewis, Philip E.T. & Hall, Nigel H. & Savage, C.R. & Kingston, A.G., 1988. "Taxation, Cost Of Capital And Investment In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-7, April.
    4. Yuewen Huo & Songlin Ye & Zhou Wu & Fusuo Zhang & Guohua Mi, 2022. "Barriers to the Development of Agricultural Mechanization in the North and Northeast China Plains: A Farmer Survey," Agriculture, MDPI, vol. 12(2), pages 1-14, February.

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