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...

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...

Developing implicit rental rates for capital inputs is an Important step in understanding the Impact of tax law changes on agricultural investments This article develops a methodology for estimating implicit rental rates and presents annual estimates of rental rates for seven categories of farm...

Implications of real cash balances as a productive input in agricultural production are explored. A system of aggregate input demand functions for agriculture including real cash balances is formulated and estimated, assuming that producers minimize input costs for a given output level....