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Effect of Changes in the Interest Rate on the Interest Expenditure

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  • Moss, Charles
  • Kropp, Jaclyn D.

Abstract

The agricultural sector in the United States is affected by a variety of policies; however, monetary policies may have a significant impact on the sector. This study examines the potential impact of these policies by estimating the effect of changes in the interest rate on borrowing and the share of interest paid to cash expenditures. The results indicate at the aggregate level interest expenditures increase by less than the increase in the interest rate.

Suggested Citation

  • Moss, Charles & Kropp, Jaclyn D., 2025. "Effect of Changes in the Interest Rate on the Interest Expenditure," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360681, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360681
    DOI: 10.22004/ag.econ.360681
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    References listed on IDEAS

    as
    1. Charles B Moss, 2010. "Risk, Uncertainty, and the Agricultural Firm — A Summary and Outlook," World Scientific Book Chapters, in: Risk, Uncertainty And The Agricultural Firm, chapter 12, pages 250-252, World Scientific Publishing Co. Pte. Ltd..
    2. Charles B. Moss & Jaclyn D. Kropp, 2025. "Interest rates and agricultural debt: estimating the marginal interest rate," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 85(2), pages 337-374, February.
    3. Maria Bampasidou & Ashok K. Mishra & Charles B. Moss, 2017. "Modeling debt choice in agriculture: the effect of endogenous asset values," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 77(1), pages 95-110, May.
    4. repec:cup:jagaec:v:22:y:1990:i:02:p:191-197_00 is not listed on IDEAS
    5. Robert A. Collins, 1985. "Expected Utility, Debt-Equity Structure, and Risk Balancing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 627-629.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    7. Charles B Moss, 2010. "Risk, Uncertainty and the Agricultural Firm," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 7469.
    8. Featherstone, Allen M. & Moss, Charles B., 1990. "Quantifying Gains To Risk Diversification Using Certainty Equivalence In A Mean-Variance Model: An Application To Florida Citrus," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-7, December.
    9. Charles B Moss, 2022. "Production Economics:An Empirical Approach," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 12332.
    10. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
    Full references (including those not matched with items on IDEAS)

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