| Registro completo |
| Provedor de dados: |
AgEcon
|
| País: |
United States
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| Título: |
Economic Hysteresis in Variety Selection
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| Autores: |
Richards, Timothy J.
Green, Gareth P.
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| Data: |
2008-06-19
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| Ano: |
2003
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| Palavras-chave: |
California
Grapes
Hysteresis
Investment
Jump diffusion
Real options
Variety adoption
Wine
Q14
Q11
D92
C34
|
| Resumo: |
Investing in a new perennial crop variety involves an irreversible commitment of capital and generates an uncertain return stream. As a result, the decision to adopt a new variety includes a significant real option value. Waiting for returns to rise above this real option causes a delay in adoption because of economic hysteresis. This study tests for hysteresis in the adoption of wine grape varieties using a sample of district-level data from the state of California. The empirical results show a significant hysteretic effect in wine grape investment, which might be reduced by activities that smooth earnings over time.
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| Tipo: |
Journal Article
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/37310
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| Relação: |
Journal of Agricultural and Applied Economics>Volume 35, Number 01, April 2003
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| Formato: |
14
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