Use of Life Insurance to Fund the Farm Purchase from Heirs
用随机占优方法分析人寿保险与分期付款两种方式，为从非农继承人手中购买农场提供资金。研究发现风险偏好者倾向分期付款，而风险厌恶者偏好更高比例的人寿保险，部分保险融资在多数情况下最优。
Abstract General stochastic dominance is used to analyze the use of life insurance versus installment payments to fund the purchase of a decedent's business interest from off‐farm heirs. Generally, a risk preferrer prefers an installment purchase. The percentage of insurance funding preferred increases as aversion to risk increases. Higher income tax rates, lower discount rates, and lower premium costs move the preference for greater percentages of life insurance to lower levels of risk aversion. The funding decision clearly depends upon the characteristics of the individuals involved in the business. Nevertheless, partial funding with life insurance appears optimal in many cases.