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quantifies investment multiples that trigger the adoption of organic farming. Compared with neoclassical models it suggests an …
Persistent link: https://www.econbiz.de/10008800858
This paper examines the impact of technical efficiency on the optimal exit timing of farms in a stochastic dynamic framework. Starting from a standard real options approach, we incorporate technical efficiency via a production function and derive an optimal price trigger at which farms...
Persistent link: https://www.econbiz.de/10011068841
This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …
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as an instrument for investment in cattle. We find average returns in the order of -2% at the mean, but they vary across …
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