The environmental effects of expanded trade : a firm-level simulation analysis o investment in Texas grapefruit /

a modified investment decision rule. The Dixit-Pindyck model

Bibliographic Details
Main Author: Elmer,Nicole Audra
Format: Thesis eBook
Language:English
Published: [Place of publication not identified] : [publisher not identified] ; 1997.
Subjects:
Online Access:Link to OAKTrust copy
Description
Summary:a modified investment decision rule. The Dixit-Pindyck model
and environment factors were not an important additional
and price volatility.
applies because an investment in a citrus grove involves a
appropriateness of the Dixit-Pindyck model for modeling
conducted in four stages. First, based on a historical
decision rule, which accounts for uncertainty and
development associated with expanded trade are likely to be
environmental effects from growth associated with expanded
estimate the extent to which three trade and environment
ex ante analysis of a prototypical Texas grapefruit
explained by a model which accounts for risk due to freezes
factors affect investment behavior. As modeled, these trade
future investments in Texas citrus. The modified investment
grapefruit grove. Sensitivity analysis was conducted to
in grapefruit, relative to prices and freezes. Declines in
incorporating the value of the option to wait to invest into
industry and, in particular, whether rapid growth and
industry. The Dixit-Pindyck model employed in this research
information and data pertaining to these variables were
investment analysis (based on net present value calculations)
investment decision was developed, and decision rules for
investment in citrus in the LRGV in the recent past are well
irreversibility, is significantly different from a decision
is an investment analysis technique building on orthodox
large, irreversible (sunk cost) component. The research was
modeled as key sources of uncertainty. Second, the
obtained through interviews with experts to develop a profile
of a prototypical citrus investment opportunity. Finally, an
of uncertainty for a prototypical investment in a Texas
opportunity cost of land -- were identified as factors likely
Pindyck model. The research results support the
prospective future investments were devised using the Dixit-
review of the Texas citrus industry, prices and freezes were
rule derived from an orthodox investment analysis. This
significant factors affecting future investment in the
source of uncertainty likely to influence future investment
This research is about the future of the Texas citrus
to account for uncertainty and irreversibility by
to affect future investments in Texas citrus. Third,
trade -specifically, water scarcity, congestion, and the
Item Description:"Major subject: Agricultural Economics".
Vita.
Physical Description:x, 146 leaves : illustrations, maps ; 28 cm.
Also available online.
Issued also on microfiche from Lange Micrographics.
Bibliography:Includes bibliographical references: 114-120.