A combination of experimental and simulation procedures identify important factors in an Illinois cash grain farmerÂ’s machinery investment decisions. In an experiment setting, a panel of farmers based investment decisions on their own expectations, farm situations, and varying policy...

Rather than relying on ex post market data, this study derives theoretically more appropriate measures of economic depreciation and capital gains based on the expectations of farmers. In this context, values of depreciable assets are highly sensitive to the pattern of expected future earnings...

A micro-analytic approach based on an integration of elements from Agency and Transactions-cost theories, was followed to develop a theoretical framework for characterizing vertical coordination decisions at the firm level. Vertical coordination modes were defined as all possible arrangements...