Borrowing constraints and the agricultural investment decision process
This paper develops a dynamic intertemporal model under the hypothesis of asymmetric information for the analysis of the rate of investment in the agricultural sector. The model stresses the importance of borrowing constraints for the investment decision of firms. Using the model we derive, following Abel and Blanchard's (1986) approach, an estimate for marginal Tobin's Q. We find that this series is positively and strongly related to the agricultural rate of investment in Italy during the period of 1960-1996. [Econ-Lit Citations: Q14, E62, E22] © 2002 Wiley Periodicals, Inc.
Volume (Year): 18 (2001)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Abel, Andrew B & Blanchard, Olivier J, 1986.
"The Present Value of Profits and Cyclical Movements in Investment,"
Econometric Society, vol. 54(2), pages 249-73, March.
- Andrew B. Abel & Olivier J. Blanchard, 1983. "The Present Value of Profits and Cyclical Movements in Investment," NBER Working Papers 1122, National Bureau of Economic Research, Inc.
- Freeman, H.A. & Ehui, Simeon K. & Jabbar, Mohammad A., 1998.
"Credit constraints and smallholder dairy production in the East African highlands: application of a switching regression model,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 19(1-2), September.
- Freeman, H. A. & Ehui, Simeon K. & A. Jabbar, Mohammad, 1998. "Credit constraints and smallholder dairy production in the East African highlands: application of a switching regression model," Agricultural Economics, Blackwell, vol. 19(1-2), pages 33-44, September.
- Freeman, H Ade & Ehui, Simeon K & Jabbar, Mohammad A., 1998. "Credit Constraints And Smallholder Dairy Production In The East African Highlands: Application Of A Switching Regression Model," Research Reports 183008, International Livestock Research Institute.
- Nelson, Charles R & Kang, Heejoon, 1981.
"Spurious Periodicity in Inappropriately Detrended Time Series,"
Econometric Society, vol. 49(3), pages 741-51, May.
- Nelson, Charles R & Kang, Heejoon, 1979. "Spurious Periodicity in Inappropriately Detrended Time Series," The Warwick Economics Research Paper Series (TWERPS) 161, University of Warwick, Department of Economics.
- Hayashi, Fumio, 1982.
"Tobin's Marginal q and Average q: A Neoclassical Interpretation,"
Econometric Society, vol. 50(1), pages 213-24, January.
- Fumio Hayashi, 1981. "Tobin's Marginal q and Average a : A Neoclassical Interpretation," Discussion Papers 457, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:18:y:2001:i:1:p:101-114. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.