This paper uses FBFM (Illinois Farm Business Farm Management Association) data to analyze several key factors in the decision to categorize borrowers into acceptable or problematic and to classify borrowers across five classes. Net worth does not play significant role in the decision process for...

This article evaluates the effects of including the costs of bankruptcy in a dynamic model of off-farm investment decisions using a stochastic dynamic programming (SDP) model which incorporates the stochastic dynamic nature of investment returns and the interrelationships between financial...

This study develops a multi-crop insurance model which is employed to evaluate crop insurance decisions when several crops are produced jointly. The results suggest that the diversification effects derived from producing multiple crops can substantially alter the risk reduction impacts of crop...

This paper extends finance theory under risk to account for borrowing behavior under financial stress conditions. As the financial stress level for the firm increases, the role of credit or unused borrowing capacity changes. With a strong equity position, credit is valued as a reserve to avoid...

This paper reexamines foreign currency markets for evidence of fractional integration, and extends the extant literature in several important dimensions. First, we utilize a new semiparametric wavelet-based estimator, which is far superior to the more prevalent GPH estimator on the basis of mean...

This study analyzes how rotating savings and credit associations (ROSCAs) in Senegal were able to overcome the collective action dilemma, maintain institutional performance, and remain sustainable over time. This study models cooperation among members as well as the performance and...

Relatively few farmers regularly use tax-favored retirement accounts to diversify long-term farm assets with nonfarm savings. The Taxpayer Relief Act of 1997 creates new investment opportunities for both IRAs and regular capital assets. Complex tradeoffs exist among new tax incentives, possible...

We investigate the objectives of agricultural bank managers and their impacts on bank efficiency. If managers are non-neutral toward risk, then banks may appear inefficient when they are not. We find non-neutrality toward risk and efficiency gains due to firm size, loan shares, asset shares, and...

Repeat borrowing is critical for the long-term financial viability of microfinance institutions (MFIs), which provide financial services to low-income households in developing countries. Repeat borrowers reduce MFI administrative costs, lower risks, and increase institutional productivity. In...

A competing risks model is implemented to establish the influence of cash flow-based counseling on mortgage loan repayment by rural and urban low-income households. Data from 405 counseled and non-counseled clients are used to test hypotheses about the effectiveness of counseling, duration of...