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Optimal Tractor Replacement: What Matters?
Author(s) -
Perry Gregory M.,
Nixon Clair J.
Publication year - 1991
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349562
Subject(s) - tractor , business , operations management , agricultural engineering , economics , automotive engineering , engineering
A number of refinements are made to the classic model used in equipment replacement. This revised model is then used to analyze the importance of major variables and assumptions employed in equipment replacement analysis. The results suggest usage and repair costs have much greater influence on replacement than other factors. Most tax policy, in particular, seems to be of minor importance compared to usage and repair costs.