Changes in real interest rates may affect the rate of adjustment of machinery to optimal levels This finding results from the development and application of a theoretically consistent analytical framework for examining agricultural investment 10 machinery Results from duality theory on...

Two approaches, a flexible accelerator model and a stochastic coefficients alternative, are used to estimate the structure of aggregate agricultural investment. Structural estimates of the adjustment rates for each model are similar. The stochastic coefficients model, however, performs better in...

This study examines the effects of the changing fiscal role of the federal government with respect to providing financial support for low-income households and the taxation of returns from capital. Specifically, the effects of reducing transfers to low income families by US$10 billion and...

The Tax Reform Act of 1986 significantly changed incentives for investing. This analysis specifically examines how changes in marginal tax rates, depreciation schedules, and the investment tax credit altered the cost of capital and net investment in agriculture. A stochastic coefficients...