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Effect of subsidized credits on the investor's marginal price in the purchase of forest enterprises



Effect of subsidized credits on the investor's marginal price in the purchase of forest enterprises



Forst und Holz 48(14): 394-397



The provision of state-subsidized (low-interest) credits for the purchase of forest properties is discussed in the context of the privatization of expropriated forest areas in former East Germany. The effect of such credits on the price which a potential purchaser is willing to pay for a forest property is discussed, with some examples illustrating the effect of various factors such as currency depreciation, varying interest rates, low returns, etc.

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Accession: 002604974

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