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Has Debt Restructuring Facilitatead Structural Transformation on Israeli Family Farms?

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Author Info
Kimhi, Ayal

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Abstract

This paper analyzes structural transformation on Israieli family farms using longitudinal village-level data for the years 1992-2001, with particular emphases on the effects of the 1985 debt crisis and the subsequent 1992 debt settlement legislation. Dynamic panel GMM estimation reveals a negative effect of the amount of debt, and a positive effect of reaching a debt restructuring agreement, on farm size. Reaching an agreement also had an indirect negative effect on the shift to off-farm work. No significant effect was found on farm exits. This implies that the debt restructuring legislation accomplished its goal of rehabilitating the farm sector, at least to some extent.

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Paper provided by Hebrew University of Jerusalem, Department of Agricultural Economics and Management in its series Discussion Papers with number 37943.

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Date of creation: 2008
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Handle: RePEc:ags:huaedp:37943

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Postal: Faculty of Agriculture, Food and Environmental Quality Sciences Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100
Phone: 08-9481230
Fax: 08-9466267
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
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  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
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  4. Avner Ahituv & Ayal Kimhi, 2006. "Simultaneous estimation of work choices and the level of farm activity using panel data," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 33(1), pages 49-71, March.
  5. Kislev, Yoav & Leerman, Zvi & Zusman, Pinhas, 1991. "Recent Experience with Cooperative Farm Credit in Israel," Economic Development and Cultural Change, University of Chicago Press, vol. 39(4), pages 773-89, July.
  6. Combes, Pierre-Philippe & Magnac, Thierry & Robin, Jean-Marc, 2003. "The Dynamics of Local Employment in France," CEPR Discussion Papers 3912, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Helpman, Elhanan & Leiderman, Leonardo, 1988. "Stabilization in high inflation countries: Analytical foundations and recent experience," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 28(1), pages 9-84, January. [Downloadable!] (restricted)
  8. Rudiger Dornbusch & Ferico Sturzenegger & Holger Wolf, 1990. "Extreme Inflation: Dynamics and Stabilization," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1990-2), pages 1-84. [Downloadable!]
  9. Mary Clare Ahearn & Jet Yee & Penni Korb, 2005. "Effects of Differing Farm Policies on Farm Structure and Dynamics," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(5), pages 1182-1189, November. [Downloadable!] (restricted)
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