A Farm Firm Model of Machinery Investment Decisions
American Journal of Agricultural Economics1987Vol. 69(1), pp. 64–77
Citations Over TimeTop 10% of 1987 papers
Abstract
Abstract This article presents a multiperiod mixed integer programming (MMIP) model of optimal machinery decisions. Infinite horizon valuation models of replacement and other investment situations are conceptualized in the context of a finite programming model. Dual properties of the MMIP model are used to identify and value opportunity costs involved in investment decisions of farm machinery. The interdependent nature of investment and production relationships necessary for solving these values emphasizes the importance of a holistic firm perspective in analyzing farm machinery investment strategies. An empirical situation is used to demonstrate model application.
Related Papers
- → Interdependencies – Blessings and Curses(2017)16 cited
- → Game-Theoretic Decision Making for the Resilience of Interdependent Infrastructures Exposed to Disruptions(2019)14 cited
- → A Survey of Interdependency Models for Critical Infrastructure Networks(2017)8 cited
- → Descriptive analysis of secondary interdependencies(2012)
- → Global Industry Interdependence(2012)