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Investment decisions for country elevators
Author(s) -
Wilson Wesley W.,
Dooley Frank J.
Publication year - 1989
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(198909)5:5<449::aid-agr2720050504>3.0.co;2-b
Subject(s) - elevator , investment (military) , investment decisions , business , logit , nested logit , economics , industrial organization , microeconomics , econometrics , engineering , production (economics) , politics , structural engineering , political science , law
Trainload shipments of grain by elevators substantially reduce their transportation costs. However, many elevators must make investments upgrading their plant before they can ship in trainload movements. In this article, a logit model is developed which considers the investment decision for particular elevators in terms of the physical characteristics of the facility and firm attributes. The results suggest there are considerable differences across elevators in the likelihood of being targeted for investment and shipping grain in trainload movements.