| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Policy Design as an Irreversible Investment Under Uncertainty: Norwegian Agriculture and the WTO
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| Autores: |
Mittenzwei, Klaus
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| Data: |
2006-05-25
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| Ano: |
2002
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| Palavras-chave: |
Option value
Policy reform
WTO
Norway
Uncertainty
International Relations/Trade
C61
D78
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| Resumo: |
This paper is concerned with the timing of an agricultural policy reform under uncertainty. The focus is on the opportunity cost of giving up the option to wait when implementing a policy reform. Including the option value in applied policy analysis can help explain why conventional analyses may find observed policies to be Pareto-inferior. Furthermore, it explains why otherwise profitable policy reforms may be delayed. The theoretical model is applied to Norwegian agricultural policy anticipating a prospective WTO agreement. It is argued that the option value should be incorporated into applied policy analysis when high uncertainty prevails.
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| Tipo: |
Conference Paper or Presentation
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| Idioma: |
Inglês
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| Identificador: |
21575
http://purl.umn.edu/24875
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| Editor: |
AgEcon Search
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| Relação: |
European Association of Agricultural Economists>2002 International Congress, August 28-31, 2002, Zaragoza, Spain
Contributed Paper
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| Formato: |
16
application/pdf
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