STOCHASTIC DYNAMIC MODELING: AN AID TO AGRICULTURAL LENDER DECISION MAKING Report as inadecuate




STOCHASTIC DYNAMIC MODELING: AN AID TO AGRICULTURAL LENDER DECISION MAKING - Download this document for free, or read online. Document in PDF available to download.

Factors affecting a lender’s decision to grant farmers operating credit in North Dakota are quantified in an intertemporal loan profitability model using stochastic dynamic programming. Experimental data obtained from a panel of lenders demonstrates the sensitivity of an optimal policy to changes in a lender’s discount rate, a borrower’s repayment status, and patronage. The value of credit scoring models that appraise a borrower’s credit worthiness also is determined.

Subject(s): Agricultural Finance

Issue Date: 1989-07

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/32463 Published in: Western Journal of Agricultural Economics, Volume 14, Number 1 Page range: 157-165

Total Pages: 9

Record appears in: Western Agricultural Economics Association > Western Journal of Agricultural Economics





Author: Gustafson, Cole R.

Source: http://ageconsearch.umn.edu/record/32463?ln=en



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