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© 1983 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Modelling credit and private investment in Greek agriculture*

N.C. BALTAS**

Agricultural Bank of Greece, Research and Planning Division, Athens Greece

Received October 1, 1983;

Summary

A simultaneous equation model is presented, describing the demand for credit and investments by Greek farmers. The level of credit is shown to have a strong influence on investment, particularly buildings. Reduced form equations show that a single percentage point price rise eventually leads to Drs. 37 mio more investments, of which 60% is financed by loans from the Agricultural Bank of Greece.


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