ASSESSING THE IMPACT OF CREDIT CONTRAINTS AT THE FARM LEVEL USING A SIMULATIVE APPROACH

This paper investigates the effects of credit constraints on the Romanian farm investment behaviour. In order to do the empirical investigation the simulative approach is used in the construction of a model generically named SIMULPACROM. This one is then used in 21 farms specialised in crop production taken from the FDAN sample. The financial scenarios show that the barrowing possibilities importantly affect both the farm’s net revenue and its investment behaviour. The farm size and its indebt degree are variables which can explain the credit constraints.