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An empirical investigation of farm mortgage loan borrowers
Author(s) -
Van Kooten G. C.,
Arthur Louise M.
Publication year - 1985
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(198522)1:2<185::aid-agr2720010207>3.0.co;2-u
Subject(s) - loan , corporation , sample (material) , survey data collection , business , economics , mortgage loan , actuarial science , finance , statistics , chemistry , mathematics , chromatography
Cross‐sectional data from a 1981 survey of Saskatchewan farmers are used to investigate the determinants of size of long‐term loans from the Canadian Farm Credit Corporation. Heckman's procedure is used to correct for sample selectivity bias, which was shown to be present. The results are tentative due to the cross‐sectional properties of the data. They seem to show that the Farm Credit Corporation is fulfilling its stated aims in lending to new, young, small operators but emphasizing ability to repay the loan.