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| Registros recuperados: 45 | |
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| Odening, Martin; Musshoff, Oliver; Utesch, Volker. |
| The objective of this paper is to explore the potential of the real options approach for analyzing farmers’ choice to switch from conventional to organic farming. Understanding the determinants of this decision is relevant in particular for agricultural policy makers when predicting the response of farmers to support programs. After a brief review of the existing literature on barriers to the adoption of organic farming a theoretical model is presented that allows one to incorporate two main features of the adoption decision, namely irreversibility and uncertainty of the returns. The real options model quantifies investment multiples that trigger the adoption of organic farming. Compared with neoclassical models it suggests an inertia of the respective... |
| Tipo: Journal Article |
Palavras-chave: Organic farming; Real options; Switching regression; Hysteresis; Farm Management. |
| Ano: 2004 |
URL: http://purl.umn.edu/97451 |
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| Ritter, Matthias; Musshoff, Oliver; Odening, Martin. |
| Weather risk is one of the main causes for income fluctuation in agriculture. Since 1997, the economic consequences of weather risk can be insured with weather derivatives, which are offered for many different weather events, such as temperature, rainfall, snow or hurricanes. It is well known that the hedging effectiveness of weather derivatives is interfered by the existence of geographical basis risk, i.e., the deviation of weather conditions at different locations. In this paper, we explore how geographical basis risk of rainfall based derivatives can be reduced by regional diversification. Minimizing geographical basis risk requires knowledge of the joint distribution of rainfall at different locations. For that purpose, we estimate a daily multi-site... |
| Tipo: Presentation |
Palavras-chave: Management; Weather risk; Regional diversification; Portfolio weights; Risk and Uncertainty; G11; Q14; G32. |
| Ano: 2012 |
URL: http://purl.umn.edu/122527 |
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| Hinrichs, Jan; Musshoff, Oliver; Odening, Martin. |
| German hog production responds only very limited to price fluctuations in the pork market. The hog production concentrates in a few regions though it does not depend on special natural conditions. Furthermore, the production volume does hardly vary over time. Relatively high market risks, sunk costs, and the flexibility of the decision maker to defer investments characterize decision problems hog production. Thus the real option approach is chosen to explain the inertia in production capacity. Using panel data of specialised hog farms from the German farm accountancy data network (FADN) an empirical investment model is estimated. Formally, the model has the structure of an ordered probit model. This approach allows to test for economic hysteresis in the... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Economic Hysteresis; Risk; Real options; Hog production; Livestock Production/Industries. |
| Ano: 2005 |
URL: http://purl.umn.edu/18813 |
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| Feil, Jan-Henning; Musshoff, Oliver. |
| In consequence of changes in general conditions, a higher level of investments and disinvestments in agriculture can be expected. To date, however, there are no policy impact analyses on both investments and disinvestments in competitive agricultural markets in a dynamic-stochastic context. This paper aims to develop a conceptual real options market model, which allows the impact assessment of different political schemes on investment and disinvestment thresholds and the sectoral welfare. Exemplarily, the effects of price floors, investment subsidies and production ceilings are analysed. The results show that the consideration of limited reversibility, that is disinvestments, is of relevance as it can impact the assessment of specific policies. |
| Tipo: Presentation |
Palavras-chave: Real options; Competition; Policy impact analysis; Genetic algoritms; Marketing; Political Economy. |
| Ano: 2012 |
URL: http://purl.umn.edu/124294 |
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| Registros recuperados: 45 | |
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