Optimal timing of farm transferal from parent to child

Ayal Kimhi

doi:10.2307/1243624

Optimal timing of farm transferal from parent to child

Ayal Kimhi

Department of Environmental Economics and Management

Research output: Contribution to journal › Article › peer-review

42 Scopus citations

Abstract

When farm income is first increasing and then decreasing in the operator’s age, the timing of farm transferal from parent to child is optimally determined by families who seek to maximize joint income or utility. Using a sample of Israeli farms in which the operation of the farm changed from parent to child between 1971 and 1981, equations of transfer time and child’s education are derived. A simultaneous equation, censored regression model is estimated using a two-stage method. Results support the theoretical predictions that transfer time is decreasing with parent’s age and with child’s schooling, and increasing with parent’s experience.

Original language	English
Pages (from-to)	234-236
Number of pages	3
Journal	American Journal of Agricultural Economics
Volume	76
Issue number	2
DOIs	https://doi.org/10.2307/1243624
State	Published - May 1994

Bibliographical note

Funding Information:
Ayal Kimhi is research and teaching associate, Department of Agricultural Economics and Management, The Hebrew University. This research was supported by Grant No. IS-1845-90 from BARD, the United States-Israel Binational Agricultural Research and Development Fund.

Keywords

Censored Regression Model
Family Farm
Intertemporal Optimization
Transfer Timing

Access to Document

10.2307/1243624

Cite this

@article{a3e372c4588c45779f2dc47a42261446,

title = "Optimal timing of farm transferal from parent to child",

abstract = "When farm income is first increasing and then decreasing in the operator{\textquoteright}s age, the timing of farm transferal from parent to child is optimally determined by families who seek to maximize joint income or utility. Using a sample of Israeli farms in which the operation of the farm changed from parent to child between 1971 and 1981, equations of transfer time and child{\textquoteright}s education are derived. A simultaneous equation, censored regression model is estimated using a two-stage method. Results support the theoretical predictions that transfer time is decreasing with parent{\textquoteright}s age and with child{\textquoteright}s schooling, and increasing with parent{\textquoteright}s experience.",

keywords = "Censored Regression Model, Family Farm, Intertemporal Optimization, Transfer Timing",

author = "Ayal Kimhi",

note = "Funding Information: Ayal Kimhi is research and teaching associate, Department of Agricultural Economics and Management, The Hebrew University. This research was supported by Grant No. IS-1845-90 from BARD, the United States-Israel Binational Agricultural Research and Development Fund.",

year = "1994",

month = may,

doi = "10.2307/1243624",

language = "אנגלית",

volume = "76",

pages = "234--236",

journal = "American Journal of Agricultural Economics",

issn = "0002-9092",

publisher = "Oxford University Press",

number = "2",

}

TY - JOUR

T1 - Optimal timing of farm transferal from parent to child

AU - Kimhi, Ayal

N1 - Funding Information: Ayal Kimhi is research and teaching associate, Department of Agricultural Economics and Management, The Hebrew University. This research was supported by Grant No. IS-1845-90 from BARD, the United States-Israel Binational Agricultural Research and Development Fund.

PY - 1994/5

Y1 - 1994/5

N2 - When farm income is first increasing and then decreasing in the operator’s age, the timing of farm transferal from parent to child is optimally determined by families who seek to maximize joint income or utility. Using a sample of Israeli farms in which the operation of the farm changed from parent to child between 1971 and 1981, equations of transfer time and child’s education are derived. A simultaneous equation, censored regression model is estimated using a two-stage method. Results support the theoretical predictions that transfer time is decreasing with parent’s age and with child’s schooling, and increasing with parent’s experience.

AB - When farm income is first increasing and then decreasing in the operator’s age, the timing of farm transferal from parent to child is optimally determined by families who seek to maximize joint income or utility. Using a sample of Israeli farms in which the operation of the farm changed from parent to child between 1971 and 1981, equations of transfer time and child’s education are derived. A simultaneous equation, censored regression model is estimated using a two-stage method. Results support the theoretical predictions that transfer time is decreasing with parent’s age and with child’s schooling, and increasing with parent’s experience.

KW - Censored Regression Model

KW - Family Farm

KW - Intertemporal Optimization

KW - Transfer Timing

UR - http://www.scopus.com/inward/record.url?scp=0028193510&partnerID=8YFLogxK

U2 - 10.2307/1243624

DO - 10.2307/1243624

M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???

AN - SCOPUS:0028193510

SN - 0002-9092

VL - 76

SP - 234

EP - 236

JO - American Journal of Agricultural Economics

JF - American Journal of Agricultural Economics

IS - 2

ER -

Optimal timing of farm transferal from parent to child

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Cite this