Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment

This article reviews various models that may be used to explain optimal leverage choice for the proprietary farmer in a stochastic dynamic environment and develops a new model that highlights the risk of failure rather than the usual concept of risk as the variability of wealth. The model suggests t...

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Bibliographic Details
Main Authors:	Robert A. Collins, Larry S. Karp
Format:	Article
Language:	English
Published:	Western Agricultural Economics Association 1993-12-01
Series:	Journal of Agricultural and Resource Economics
Subjects:	dynamic models financial leverage stochastic optimal control
Online Access:	https://ageconsearch.umn.edu/record/30962

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record_format	Article
spelling	doaj-d9aa809485084d9bb8885691ac8775c62020-11-25T02:12:10ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851993-12-0118222523810.22004/ag.econ.3096230962Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic EnvironmentRobert A. CollinsLarry S. KarpThis article reviews various models that may be used to explain optimal leverage choice for the proprietary farmer in a stochastic dynamic environment and develops a new model that highlights the risk of failure rather than the usual concept of risk as the variability of wealth. The model suggests that in addition to the usual factors, farm financial leverage is affected by age, wealth, and the opportunity cost of farming.https://ageconsearch.umn.edu/record/30962dynamic modelsfinancial leveragestochastic optimal control
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Robert A. Collins Larry S. Karp
spellingShingle	Robert A. Collins Larry S. Karp Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment Journal of Agricultural and Resource Economics dynamic models financial leverage stochastic optimal control
author_facet	Robert A. Collins Larry S. Karp
author_sort	Robert A. Collins
title	Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment
title_short	Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment
title_full	Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment
title_fullStr	Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment
title_full_unstemmed	Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment
title_sort	lifetime leverage choice for proprietary farmers in a dynamic stochastic environment
publisher	Western Agricultural Economics Association
series	Journal of Agricultural and Resource Economics
issn	1068-5502 2327-8285
publishDate	1993-12-01
description	This article reviews various models that may be used to explain optimal leverage choice for the proprietary farmer in a stochastic dynamic environment and develops a new model that highlights the risk of failure rather than the usual concept of risk as the variability of wealth. The model suggests that in addition to the usual factors, farm financial leverage is affected by age, wealth, and the opportunity cost of farming.
topic	dynamic models financial leverage stochastic optimal control
url	https://ageconsearch.umn.edu/record/30962
work_keys_str_mv	AT robertacollins lifetimeleveragechoiceforproprietaryfarmersinadynamicstochasticenvironment AT larryskarp lifetimeleveragechoiceforproprietaryfarmersinadynamicstochasticenvironment
_version_	1724911096925519872

Lifetime Leverage Choice for Proprietary Farmers in a Dynamic Stochastic Environment

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