Abstract
Farm consumption behavior has an important indirect role in determining the ability of farms to invest and grow. In this paper I examine the effect on farm consumption behavior of the presence of quantitative restrictions on farm borrowing. Using a form of the life cycle model which allows for both consumption and production by the household, the effect of borrowing restrictions on consumption behavior is tested econometrically for a sample of Dutch farm households. The results suggest that the life cycle model without borrowing restrictions is rejected by the data.
| Original language | English |
|---|---|
| Pages (from-to) | 952-959 |
| Number of pages | 8 |
| Journal | American Journal of Agricultural Economics |
| Volume | 77 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 1 Nov 1995 |