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Government Payments to Farmers and Real Agricultural Asset Values in the 1980s

Published online by Cambridge University Press:  05 September 2016

Charles B. Moss ,
J.S. Shonkwiler  and
John E. Reynolds
Charles B. Moss
Affiliation:
Department of Food and Resource Economics, University of Florida
J.S. Shonkwiler
Affiliation:
Department of Food and Resource Economics, University of Florida
John E. Reynolds
Affiliation:
Department of Food and Resource Economics, University of Florida
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Abstract

This study determines the effect of government payments on real agricultural asset values using Bayesian vector autoregression. In developing the empirical model, special attention is focused on the informational content of government payments. The results indicate that government payments to farmers have little effect on real asset values in the long run. In the short run, an increase in government payments to farmers may be associated with decline in asset values.

Keywords

informational contentBayesian vector autoregressionreal asset valuesgovernment payments to farmers
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 139 - 153
Copyright
Copyright © Southern Agricultural Economics Association 1989

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