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An Examination of Farm Sector Real Asset Dynamics: 1910–85

An Examination of Farm Sector Real Asset Dynamics: 1910–85 The dynamic response of real farm asset values to changes in net returns and interest rates is studied using vector autoregression. Results show that a shock in real asset values, real returns to assets, or real interest rates leads to a process in which real asset values overreact. In the initial period, a reaction to a shock immediately occurs followed by a continued build‐up in the asset value for up to six years until finally the effect of the one‐time, transitory shock begins to die out. The results suggest a market with a propensity for bubbles. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Agricultural Economics Wiley

An Examination of Farm Sector Real Asset Dynamics: 1910–85

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References (26)

Publisher
Wiley
Copyright
© Agricultural and Applied Economics Association
ISSN
0002-9092
eISSN
1467-8276
DOI
10.2307/1241689
Publisher site
See Article on Publisher Site

Abstract

The dynamic response of real farm asset values to changes in net returns and interest rates is studied using vector autoregression. Results show that a shock in real asset values, real returns to assets, or real interest rates leads to a process in which real asset values overreact. In the initial period, a reaction to a shock immediately occurs followed by a continued build‐up in the asset value for up to six years until finally the effect of the one‐time, transitory shock begins to die out. The results suggest a market with a propensity for bubbles.

Journal

American Journal of Agricultural EconomicsWiley

Published: Aug 1, 1987

Keywords: ; ; ;

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