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Agricultural Policy Uncertainty And Anticipatory Firm Level Adjustments

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  • Lagerkvist, Carl Johan

Abstract

This paper investigates, through a dynamic stochastic adjustment model the extent to which an active agricultural policy can be the source of volatility in agricultural investment. It is shown that noise in formulation of agricultural policy has adverse effects even in cases where earlier results would take that investment is increased.

Suggested Citation

  • Lagerkvist, Carl Johan, 2000. "Agricultural Policy Uncertainty And Anticipatory Firm Level Adjustments," 2000 Annual meeting, July 30-August 2, Tampa, FL 21734, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21734
    DOI: 10.22004/ag.econ.21734
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    References listed on IDEAS

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    1. Mervyn A. King, 1974. "Taxation and the Cost of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 21-35.
    2. Ken-ichi Inada, 1964. "Some Structural Characteristics of Turnpike Theorems," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 31(1), pages 43-58.
    3. Hartman, Richard, 1972. "The effects of price and cost uncertainty on investment," Journal of Economic Theory, Elsevier, vol. 5(2), pages 258-266, October.
    4. Patricia A. Duffy & C. Robert Taylor, 1994. "Effects on a Corn-Soybean Farm of Uncertainty about the Future of Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 141-152.
    5. Alvarez, L. & Kanniainen, V. & Sodersten, J., 1995. "Theory of Tax-Induced Investment Spurts," Papers 1995-18, Uppsala - Working Paper Series.
    6. Alvarez, Luis H. R. & Kanniainen, Vesa & Sodersten, Jan, 1998. "Tax policy uncertainty and corporate investment: A theory of tax-induced investment spurts," Journal of Public Economics, Elsevier, vol. 69(1), pages 17-48, July.
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    Cited by:

    1. Lagerkvist, Carl Johan & Gregory, Mark & Olson, Kent D., 2003. "Enhancing The Competitiveness And Risk-Efficiency Of Farm Assets Through Holding Farm/Financial Asset And Off-Farm Income Portfolios," 2003 Annual meeting, July 27-30, Montreal, Canada 22125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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