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| Wu, Feng; Guan, Zhengfei. |
| This article has presented a farmer decision making model of participation in the Conservation Reserve Program (CRP) under the current rising bio-fuel production. The decision is specified as an optimal stopping problem and farming return is assumed following stochastic process with the uncertainty of growth rate. Nonliear Kalman filter approach is used to continuously upgrade the new information and estimate the random growth rate with the minimum error. The problem is formulated as a linear complementarity problem that is solved numerically using a fully implicit finite difference method. It is found that participation in the CRP is sensitive to financial incentive, and shortening contract length is also an effective method to promote land enrollment in... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Conservation Reserve Program; Nonlinear Kalman Filter; Farmer Participation; Real Option; Environmental Economics and Policy. |
| Ano: 2009 |
URL: http://purl.umn.edu/51646 |
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| Moretto, Michele; Vergalli, Sergio. |
| Recent European Legislation on immigration has revealed a particular paradox on migration policies. On the one hand, the trend of recent legislation points to the increasing closure of frontiers (OECD 1999, 2001,2004), also by using immigration quotas. On the other hand, there is an increase of regularization, i.e., European policies are becoming less tight. Our aim here is to study these counterbalanced and opposite policies in European immigration legislation in a unified framework . To do this, we have used a real option approach to migration choice that assumes that the decision to migrate can be described as an irreversible investment decision where quotas represent an upper bound limit. Our results show that the paradox of counterbalancing... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Immigration; Real Option; Quota System; F22; J61; O15; R23. |
| Ano: 2008 |
URL: http://purl.umn.edu/37818 |
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