| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
ENDOGENIZING THE RESERVATION VALUE IN MODELS OF LAND DEVELOPMENT OVER TIME AND UNDER UNCERTAINTY
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| Autores: |
Batabyal, Amitrajeet A.
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| Data: |
2005-05-19
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| Ano: |
2004
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| Palavras-chave: |
Land Economics/Use
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| Resumo: |
The notion of a reservation value is a key feature of most contemporary dynamic and stochastic models of land development. It is clear that the magnitude of the reservation value has a fundamental bearing on the decision to develop or preserve land. This notwithstanding, many papers that analyze land development in a dynamic and stochastic setting treat a landowners reservation value as an exogenous variable. Therefore, the purpose of this paper is to endogenize the reservation value in the context of a model of land development over time and under uncertainty. Our analysis shows that the optimal reservation value is the solution to a specific maximization problem. In addition, we also show that there exist theoretical circumstances in which the optimal reservation value is unique.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
16606
http://purl.umn.edu/28340
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| Editor: |
AgEcon Search
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| Relação: |
Utah State University>Economics Department>Economics Research Institute, ERI Series
ERI 2004-18
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| Formato: |
14
application/pdf
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