Farmers' Investment Behavior: An Empirical Assessment of Two Specifications of Expectations
The capital investment decision is modeled and two different assumptions about expectations are compared and tested using panel data for Dutch dairy farms. The utilization of panel data allowed to account for the possibility that the intercept in the function for capital varies over the farms. The models are estimated using the generalized method of moments (GMM) for dynamic panel data. The model based on static expectations fits the data well. The results obtained from the rational expectations model are not consistent with the theory. Copyright 1996, Oxford University Press.
Volume (Year): 78 (1996)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:78:y:1996:i:1:p:166-174. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.