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| LeBlanc, Michael; Hrubovcak, James; Durst, Ron L.; Conway, Roger K.. |
| 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 econometric methodology is used to estimate an investment function which is then used to simulate the effects of tax reform. Estimates indicated that relative to prior law, the Tax Reform Act will reduce the capital stock of farm machinery and equipment by nearly $4 billion. |
| Tipo: Journal Article |
Palavras-chave: Agricultural Finance; Farm Management. |
| Ano: 1992 |
URL: http://purl.umn.edu/30743 |
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| LeBlanc, Michael; Yanagida, John F.; Conway, Roger K.. |
| 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. Empirical results suggest real cash balances are an important contributor to agricultural production. Their exclusion from production studies may lead to serious specification biases. Tests herein indicate that the demand for cash balances is relatively inelastic with respect to changes in the user cost of money and that real cash balances are a substitute for machinery and capital. |
| Tipo: Journal Article |
Palavras-chave: Agricultural Finance; Demand and Price Analysis. |
| Ano: 1987 |
URL: http://purl.umn.edu/32478 |
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