[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/eaae14/182720.html
   My bibliography  Save this paper

How financial constraints distort farm investment behaviour and regional development: a comparative analysis of four European regions

Author

Listed:
  • Sahrbacher, Amanda
  • Sahrbacher, Christoph
  • Ostermeyer, Arlette
Abstract
This paper investigates the impacts of financial constraints on the structural development of four European regions. The spatial-dynamic agent-based model used considers individual farms’ investment behaviour while those indirectly interact via land rental markets. Scenarios with different interest rates for borrowed capital and levels of credit restrictions are tested. Results show that higher interest rates slow down the development of otherwise expanding production branches whereas credit restrictions force farms to choose small and cheap investments. Income losses in both cases are compensated by lower rental prices. Impacts on structural change differ considering regional initial situations and their characteristics.

Suggested Citation

  • Sahrbacher, Amanda & Sahrbacher, Christoph & Ostermeyer, Arlette, 2014. "How financial constraints distort farm investment behaviour and regional development: a comparative analysis of four European regions," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182720, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182720
    DOI: 10.22004/ag.econ.182720
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/182720/files/Sahrbacher-How_financial_constraints_distort_farm_investment_behaviour_and_regional_development-566_a.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.182720?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 60, number 60.
    2. Petrick, Martin & Kloss, Mathias, 2012. "Drivers of agricultural capital productivity in selected EU member states," Factor Markets Working Papers 137, Centre for European Policy Studies.
    3. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    4. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Key Issues and Developments in Farmland Sales Markets in the EU Member States and Candidate Countries," Factor Markets Working Papers 114, Centre for European Policy Studies.
    5. Happe, Kathrin, 2004. "Agricultural policies and farm structures: Agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945.
    6. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, University Library of Munich, Germany.
    7. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    8. Happe, Kathrin & Kellermann, Konrad & Balmann, Alfons, 2006. "Agent-based analysis of agricultural policies: An illustration of the agricultural policy simulator AgriPoliS, its adaptation and behavior," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(1).
    9. Curtiss, Jarmila, 2012. "Determinants of Financial Capital Use: Review of theories and implications for rural businesses," Working papers 122846, Factor Markets, Centre for European Policy Studies.
    10. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Key Issues and Developments in Farmland Rental Markets in EU Member States and Candidate Countries," Factor Markets Working Papers 115, Centre for European Policy Studies.
    11. Silke Hüttel & Oliver Mußhoff & Martin Odening, 2010. "Investment reluctance: irreversibility or imperfect capital markets?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(1), pages 51-76, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sahrbacher, Christoph & Sahrbacher, Amanda & Ostermeyer, Arlette, 2013. "Simulation Results of AgriPoliS about Diminishing Capital Subsidies and Restrictions," Factor Markets Working Papers 167, Centre for European Policy Studies.
    2. Hedman Jansson, Kristina & Lagerqvist, Carl Johan, 2013. "Performance Indicators in Agricultural Financial Markets," Factor Markets Working Papers 155, Centre for European Policy Studies.
    3. Jansson, Kristina Hedman & Lagerkvist, Carl Johan, 2013. "Performance Indicators in Agricultural Financial Markets," Working papers 155701, Factor Markets, Centre for European Policy Studies.
    4. Heinrich, F. & Appel, F., 2018. "Do investors ruin Germany s peasant agriculture?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277171, International Association of Agricultural Economists.
    5. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    6. Ostermeyer, Arlette & Balmann, Alfons, 2011. "Perception of dairy farming from different views - results of a stakeholder discussion in the region Altmark, Germany," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114578, European Association of Agricultural Economists.
    7. Elodie Letort & Pierre Dupraz & Laurent Piet, 2017. "The impact of environmental regulations on the farmland market and farm structures: An agent-based model applied to the Brittany region of France," Working Papers SMART 17-01, INRAE UMR SMART.
    8. Amanda Sahrbacher & Jordan Hristov & Mark V. Brady, 2017. "A combined approach to assess the impacts of Ecological Focus Areas on regional structural development and agricultural land use," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(3), pages 111-144, December.
    9. Sahrbacher, Christoph & Kellermann, Konrad & Balmann, Alfons, 2008. "Winners And Losers Of Policy Changes – What Is The Role Of Structural Change?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6472, European Association of Agricultural Economists.
    10. Schönau, F. & Mußhoff, O., 2012. "Mit Optimierungsansätzen bessere Entscheidungen treffen? – Eine empirische Analyse in einem Planspiel," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    11. Appel, Franziska & Musshoff, Oliver, 2011. "How appropriate are myopic optimization models to predict decision behaviour: A comparison between agent-based models and business management games," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115994, European Association of Agricultural Economists.
    12. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 60, number 60.
    13. Appel, Franziska & Ostermeyer-Wiethaup, Arlette & Balmann, Alfons, 2016. "Effects of the German Renewable Energy Act on structural change in agriculture – The case of biogas," Utilities Policy, Elsevier, vol. 41(C), pages 172-182.
    14. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," EconStor Preprints 208388, ZBW - Leibniz Information Centre for Economics.
    15. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," FORLand Working Papers 12 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    16. Appel, F. & Balmann, A., 2018. "Predator or prey? - Effects of fast-growing farms on their neighborhood," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277358, International Association of Agricultural Economists.
    17. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 65, number 65.
    18. Appel, Franziska & Balmann, Alfons & Dong, Changxing & Rommel, Jens, 2018. "FarmAgriPoliS: An agricultural business management game for behavioral experiments, teaching, and gaming," IAMO Discussion Papers 173, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    19. Czyżewski, Andrzej & Staniszewski Jakub, 2017. "Agricultural Production Factors Structures In Selected Eu-15 Countries And Poland. Similarities And Differences," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 44(2), June.
    20. Sorda, G. & Sunak, Y. & Madlener, R., 2013. "An agent-based spatial simulation to evaluate the promotion of electricity from agricultural biogas plants in Germany," Ecological Economics, Elsevier, vol. 89(C), pages 43-60.

    More about this item

    Keywords

    Agricultural Finance; Community/Rural/Urban Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae14:182720. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.