The impact of government institutions on the value of improved climate forecasts is examined. Results suggest that crop insurance and earned income tax credit have little effect on the expected change in after-tax cash flows. Federal tax law has only a modest influence. As expected, the disaster program decreases the value of improved climate forecasts. With no price changes, the farm program lowers the value of the forecasts because of the acreage reduction provisions. With at least some price decreases, the farm program increases the value of climate forecasts. Here, the price supports override the acreage reduction provisions. Copyright 1996, Oxford University Press.
An econometric model was estimated to explain prices for tractors sold at auction. Tractor age, hours of use, size, and condition were statistically significant explanatory variables. Real tractor depreciation most closely approximated a sum-of-the-years digits pattern. Tractors sold at consignment and bankruptcy auctions brought a lower price than tractors sold by retiring farmers. High levels of usage did not greatly reduce tractor value, but tractors with low annual usage brought substantial premiums in the auction market.Economic depreciation of farm machinery is a significant cost of production for most farmers. Defined as the change in the value of a durable asset over a particular time period, economic depreciation is a function of (a) physical deterioration and obsolescence, and (b) changes in market supply and demand for the asset. Deterioration and obsolescence are influenced by age, use, and care of the asset. A number of studies of economic depreciation suggest depreciation rates can differ greatly among types, sizes, and manufacturers of farm equipment (Peacock and Brake; Leatham and Baker; Perry, Glyer, and Musser; McNeill).In most of the above-cited studies of economic depreciation, age is assumed to represent the effects of deterioration and obsolescence on equipment values. Although usage levels and tractor size were assumed when developing equipment replacement models, the effect of usage on depreciation was not considered. This paper focuses on the effects of usage, care, and size on tractor depreciation. Significant differences between this and previous studies include use of actual market data and a flexible functional form that allows annual depreciation rates over time to more fully reflect patterns in the data.The value of a durable asset is the net present value of the stream of expected net returns over its remaining life. Durable capital assets have finite productive lives and are subject to deterioration and obsolescence. Physical deterioration largely reflects the effects of use and care on the asset. 1 As Keynes noted, the usage level "constitutes one of the links between the present and the future. For in deciding his scale of production an entrepreneur has to exercise a choice between using up his equipment now and preserving it to be used later on" (pp. 69-70). Presumably the entrepreneur will use up equipment in the present if it is more profitable to do so. However, higher levels of usage can be expected to shorten the life of a durable asset, thereby reducing the stream of future returns and the asset's current market value.Care can moderate the effects of usage. By care, we mean not only the maintenance and repairs regularly performed by the asset owner but also the manner in which the asset is treated. 2 Care can also be considered an economic decision (Parks, Kim). Low levels of care will generally result in higher rates of depreciation.I A durable asset that is never used might also deteriorate over time. However, few capital assets will actually be left idle for long bec...
Role models can be highly influential in conveying ethical standards. This study investigates the influence various categories of role models have had on a population of over 1,600 undergraduate students in Texas, Oregon and Michigan. Those identifying clergy, boy scout leaders, friends and college advisors as role models exhibited less willingness to adopt questionable ethical behavior in negotation situations. Journalist and spouse role models tended to cause students to be more accepting of questionable behavior. Individuals with strong end-result and social contract ethical philosophies, as well as males and those who served in the military exhibited strong tendencies toward less than ethical behavior. Individuals with strong rule ethical philosophy, high levels of religiousity, and those with a cooperative attitude in negotiations tended to adopt higher ethical standards in negotiations.
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