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Valuation of Intangible Capital in Agriculture

Published online by Cambridge University Press:  28 April 2015

Fred C. White
Fred C. White*
Affiliation:
Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA
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Abstract

This study examines the valuation of research as intangible capital in agriculture using Tobin's q theory. The market value of public research capital is estimated to be 8.6 times higher than conventional assets. Private research capital is valued 5.2 times higher than conventional assets. The estimated valuation multiplier for all farm assets dropped 1/3 over the last decade. In recent years the valuation multiplier has dropped below a dollar, which indicates the market is undervaluing farm assets.

Keywords

farm assetsflexible intercept modelprincipal componentsresearch evaluationridge regressionTobin's q theory
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 437 - 445
Copyright
Copyright © Southern Agricultural Economics Association 1995

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