STOCHASTIC DYNAMIC MODELING: AN AID TO AGRICULTURAL LENDER DECISION MAKING

Factors affecting a lender’s decision to grant farmers operating credit in North Dakota are quantified in an intertemporal loan profitability model using stochastic dynamic programming. Experimental data obtained from a panel of lenders demonstrates the sensitivity of an optimal policy to changes in a lender’s discount rate, a borrower’s repayment status, and patronage. The value of credit scoring models that appraise a borrower’s credit worthiness also is determined.


Issue Date:
1989-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32463
Published in:
Western Journal of Agricultural Economics, Volume 14, Number 1
Page range:
157-165
Total Pages:
9




 Record created 2017-04-01, last modified 2017-08-25

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