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1. 1. Intertemporal land allocation decision under uncertainty and hyperbolic discounting

   University essay from SLU/Dept. of Economics

   Author : Qi Wang; [2013]
   Keywords : Land Use Decision; Option Value; Quasi-option Value; Uncertainty; Standard Exponential Discounting; Hyperbolic Discounting; Quasi-hyperbolic Discounting;

   Abstract : Land is of prime importance for all the activities of human beings, and how to efficiently use the limited land resource has been a crucial issue ever since the earliest times of human society. Uncertainty and irreversibility are important issues related to land use change, and it has been shown by Mäler and Fisher (2005, p590-p592) that the replacement of stochastic variable by its expected value could result in inappropriate land use decisions. READ MORE