This paper analyzes how the proportion of patronage refunds a cooperative pays in cash affects the cash flow of individual patrons and how an individual patron's preferences regarding patronage refunds and equity revolvement are affected by age and other factors. Using an estimated patron age distribution and a collective choice model based on the preferences of the median voter, we predict which patronage refund and equity revolvement practices should dominate under selected patron and cooperative characteristics. We also examine the role of former patrons in determining refund and revolvement practices and how outcomes may be affected by alternative voting schemes.


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