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AN ECONOMIC ALTERNATIVE TO CONCESSIONAL FARM INTEREST RATES
Author(s) -
Baker Chester B.
Publication year - 1974
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1974.tb00137.x
Subject(s) - amortization , balance of payments , debt , payment , interest rate , business , plan (archaeology) , economics , variable (mathematics) , finance , monetary economics , geography , mathematical analysis , mathematics , archaeology
A variable amortization plan is proposed, indexing annual payments made by farm mortgage borrowers. A debt reserve balance also is proposed to stabilize payments received by lenders. Research implied by the proposal is outlined, together with modelling suggestions for investigating effects of the plan on farm income after debt servicing requirements have been met.