Cooperative Formation And Financial Contracting In Agricultural Markets
AbstractWe use historical variation in the market share of agricultural cooperatives to examine the nature of the cooperative firm. Our data include the share of sectoral output accounted for by cooperative firms across 15 commodity sectors during the period 1930-2002. We test a simple financial contracting model where the cooperative firm is viewed as a particular implementation of "monitored credit" (or "informed intermediation"). Controlling for sectoral and year effects, we find support for the main prediction of our model with a positive and statistically significant relationship between cooperative market share and real annual lending rates.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19324.
Date of creation: 2005
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- Brent Hueth & Philippe Marcoul & Roger G. Ginder, 2004. "Cooperative Formation and Financial Contracting in Agricultural Markets," Center for Agricultural and Rural Development (CARD) Publications 03-wp349, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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