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Optimal Tractor Replacement: What Matters?

Author

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  • Gregory M. Perry
  • Clair J. Nixon

Abstract

A number of refinements are made to the classic model used in equipment replacement. This revised model is then used to analyze the importance of major variables and assumptions employed in equipment replacement analysis. The results suggest usage and repair costs have much greater influence on replacement than other factors. Most tax policy, in particular, seems to be of minor importance compared to usage and repair costs.

Suggested Citation

  • Gregory M. Perry & Clair J. Nixon, 1991. "Optimal Tractor Replacement: What Matters?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(1), pages 119-128.
    • Handle: RePEc:oup:revage:v:13:y:1991:i:1:p:119-128.
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    File URL: http://hdl.handle.net/10.2307/1349562
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    Cited by:

    1. Unknown, 1998. "Commodity Costs and Returns Estimation Handbook (entire book-condensed file)," Commodity Costs and Returns Estimation Handbook,, Iowa State University.
    2. Gerstle, Ari D. & Waldman, Michael, 2016. "Mergers in durable-goods industries: A re-examination of market power and welfare effects," Research in Economics, Elsevier, vol. 70(4), pages 677-692.
    3. Unknown, 1998. "References/Literature Cited," Commodity Costs and Returns Estimation Handbook,, Iowa State University.

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