Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/118175 
Erscheinungsjahr: 
2006
Schriftenreihe/Nr.: 
46th Congress of the European Regional Science Association: "Enlargement, Southern Europe and the Mediterranean", August 30th - September 3rd, 2006, Volos, Greece
Verlag: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Zusammenfassung: 
This paper studies optimal investment decision in agriculture under diminishing income expectations. The goal is to study the cost of income uncertainty and its implications to the efficiency of investment subsidies. Investment decision is modelled as a Markov decision process, extended to account for risk. Applying a stochastic programming approach, the cost of imperfect information is evaluated as the difference between the profitability of investment under stable income and under uncertain income. Computational experiments demonstrate that the cost of imperfect information can be high, deteriorating the efficiency of investment subsidies. Also, examples suggest that the optimal timing of the investment can be sensitive to risk.
Dokumentart: 
Conference Paper

Datei(en):
Datei
Größe
155.21 kB





Publikationen in EconStor sind urheberrechtlich geschützt.