Farmers' Choice of Fixed and Adjustable Interest Rate Loans
通过中西部作物-生猪农场的随机规划模型，研究农民在固定利率与浮动利率贷款间的选择，发现农民愿为固定利率债务支付最高1.5个百分点的溢价，且利率对冲成本过高不可行。
Abstract A discrete stochastic programming model of a midwestern crop‐hog farm was used to investigate farmers' fixed‐rate/adjustable‐rate loan decision. Results show it is optimal for farmers to pay up to 1.5 percentage points above adjustable interest rates to use some fixed‐rate debt. Below a one‐point premium all fixed‐rate debt is chosen. Above 1.5 points all adjustable rate debt is chosen except for more risk‐averse farmers, who choose all adjustable rate debt at 2.25 points or more. The feasibility of using financial options to hedge interest rates was investigated and found to be prohibitively expensive.