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The deterministic and speculative component of the terms of trade of primary commodities: An “Eclectic” Real Option value approach AgEcon
Scandizzo, Pasquale Lucio; Savastano, Sara; Vezzani, Antonio.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Farm Management; Land Economics/Use.
Ano: 2010 URL: http://purl.umn.edu/61086
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Optimal Farm Size under an Uncertain Land Market: the Case of Kyrgyz Republic AgEcon
Scandizzo, Pasquale Lucio; Savastano, Sara.
The paper illustrates a theoretical model of real option value applied to the problem of land development. Making use of the 1998-2001 Kyrgyz Household Budget Survey, we show that when the hypothesis of decreasing return to scale holds, the relation between the threshold value of revenue per hectare and the amount of land cultivated is positive. In addition to that, the relation between the threshold and the amount of land owned is positive in the case of continuous supply of land and negative when there is discontinuous supply of land. The direct consequence is that, in the first case, smaller farms will be more willing to rent land and exercise the option where, in the second case, larger farms will exercise first. The results corroborate the findings of...
Tipo: Conference Paper or Presentation Palavras-chave: Option value theory; Farm size; Uncertainty; Irreversibility; Agricultural and Food Policy; Land Economics/Use; Resource /Energy Economics and Policy; O13; Q12; Q15; Q18.
Ano: 2009 URL: http://purl.umn.edu/52844
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Producers' Price Expectations and the Size of the Welfare Gains from Price Stabilisation AgEcon
Scandizzo, Pasquale Lucio; Hazell, Peter B.R.; Anderson, Jock R..
This paper uses a simulation model to measure the size of the social welfare gains from price stabilisation within the general setting of a non-linear, multiplicative risk and lagged expectations model of the market. The size of the gains is found to be relatively small when producers plan on the basis of rational expectations, but it can be quite substantial for other types of expectations behaviour, including those commonly assumed in empirical supply analysis. We conclude that, in many cases, improved market information services may more economically provide the substantial part of the social benefits of price stabilisation.
Tipo: Journal Article Palavras-chave: Demand and Price Analysis.
Ano: 1983 URL: http://purl.umn.edu/12452
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