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| Registros recuperados: 58 | |
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| Corrigan, Jay R.. |
| This paper analyzes the effect that potential future availability of information has on willingness to pay in a contingent market characterized by uncertainty and irreversibility. In particular, I test whether the effect is consistent with the predictions of Zhao and Kling's (forthcoming) theory of commitment cost. The analysis is performed using the results of a contingent valuation study designed to estimate the degree to which local residents value improved water quality in Clear Lake, a spring-fed, glacial lake located in north-central Iowa. The results show that willingness to pay is highly sensitive to the potential for future learning. Offering survey respondents the opportunity to delay their purchasing decision until more information is available... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Commitment cost; Contingent valuation; Real options; Demand and Price Analysis. |
| Ano: 2001 |
URL: http://purl.umn.edu/18568 |
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| Rahim, Afaf H.; van Ierland, Ekko C.; Wesseler, Justus. |
| The gum tree (Acacia senegal) in the Sahel-Sudan zone has many environmental benign functions. An important function is to control desertification. In this paper we analyze farmers' economic incentives to preserve the existing gum trees and their incentives to create new plantations using a real options approach. Results indicate that agricultural crops provide higher economic benefits as compared to gum agroforestry system. However, on the one hand, as gum arabic is produced during the dry period and land is abundant, there are low incentives for deforestation. Instead, farmers' tend to leave the land idle and let the tree growing. On the other hand, our results suggest that an increase in the prices of gum arabic of about 330 per cent is needed to induce... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Gum arabic; Deforestation; Entry and exit; Real options; Sudan; Crop Production/Industries; D4; N5; O13; Q12; Q23. |
| Ano: 2006 |
URL: http://purl.umn.edu/25720 |
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| Dapena, Jose Pablo. |
| Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting capital. These opportunities have to be fairly valued to overcome misallocation of resources. A project with high growth opportunities requires high reinvestments to take full advantage of them until it reaches its mature stage. These investments can be seen as a succession of call options on future growth. When a company with such prospects is valued using the discounted cash flow technique and growth is taken implicitly in the growing cash flows and the residual value, the value thus obtained will be higher than the true one (under certain circumstances). Technology advances and the effects of globalization create enormous... |
| Tipo: Journal Article |
Palavras-chave: Real options; Valuation; Contingent claims valuation; Financial Economics; G12. |
| Ano: 2003 |
URL: http://purl.umn.edu/44040 |
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| Seyoum, Emayenesh; Chan, Chris. |
| This paper reports a use of a real-options valuation methodology to analyse wine grape farm investment under price and yield uncertainty. Revenue levels to incentivise entry and exit were calculated for three different sizes of wine grape farms in North West Victoria. The modelling identified lower exit and higher entry triggers than indicated by conventional net present value calculation. The wide gap of estimated indeterminacy in farm investment highlights the intertwined influence of numerous economic factors — cost structure, economies of scale, market volatility, transaction costs, and sunk and salvaged asset valuation. Drawing on these determinants of farm investment and disinvestment, the paper discusses the role of investment incentives in... |
| Tipo: Presentation |
Palavras-chave: Real options; Entry and exit; Wine grape; North West Victoria; Crop Production/Industries. |
| Ano: 2012 |
URL: http://purl.umn.edu/124446 |
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| Maack, Moritz; Maart, Syster Christin; Musshoff, Oliver. |
| In order to stimulate investments, agricultural policies frequently use price floors, which guarantee a price above a certain limit. In some cases, however, a price floor does not have the desired effects. In this study, we experimentally analyse differences in the investment be-haviour with respect to the presence of a price floor and compare the actual investment be-haviour to normative benchmarks of the net present value and the real options approach. Furthermore, we look at treatment order and learning effects. The results show that the price floor has no significant impact on the decision behaviour of participants, whereas the effects of treatment order were statistically significant. Regarding the analysis of policy impacts, the latter result shows... |
| Tipo: Presentation |
Palavras-chave: Price floors; Investment decisions; Real options; Experimental economics.; Demand and Price Analysis; C91; D81; E61.. |
| Ano: 2012 |
URL: http://purl.umn.edu/124328 |
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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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| Tzouramani, Irene; Liontakis, Angelos E.; Sintori, Alexandra; Alexopoulos, George. |
| Organic farming has experienced a vast increase within the EU, despite the fact that it implies greater risk and uncertainty than that of conventional farming. This is the result of the increased environmental concern and the rising demand for quality food, which led to the implementation of the organic policy scheme. Nevertheless, the production of organic fruits, including cherries, is still limited in the EU. Farmers will adopt this alternative farming system only if the support provided by the existing policy regime out weights the increased risk and uncertainty. This study explores the effectiveness of the current policy measures for the production of organic cherries in Greece, using the real options methodology. The framework of real options... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Keywords: organic agriculture; Real options; Agriculture policy; Uncertainty; Agricultural and Food Policy; D81; Q14; Q18. |
| Ano: 2009 |
URL: http://purl.umn.edu/51079 |
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| Plato, Gerald E.. |
| The gross soybean processing margin (the gross return per bushel of soybeans processed) is the main decision variable that processors use in deciding when and if to make binding commitments to process soybeans on future dates. Understanding how processors choose processing margins for future processing dates from among those available on successive days may help to resolve the ongoing concern about the level of competitiveness in processing agricultural commodities. Processing returns are treated as being equivalent to the returns to a call option. This approach provides the opportunity to simulate processor choice of processing margin by evaluating the incentive of waiting for a larger processing margin versus the incentive of locking in the currently... |
| Tipo: Report |
Palavras-chave: Real options; Option exercise; Processing decision; Processing margins; Futures prices; Soybean crush; Crop Production/Industries; Marketing. |
| Ano: 2001 |
URL: http://purl.umn.edu/33567 |
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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: 58 | |
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