1 resultado para sure and risky assets
em SAPIENTIA - Universidade do Algarve - Portugal
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Resumo:
In this work we develop a methodology for the economic evaluation of soil tillage technologies, in a risky environment, and to capture the influence of farmer behaviour on his technology choice. The model has short-term activities, that change with the type of year, and long-term activities, in which sets of traction investment activities are included. Although these activities do not change with the type of year, they lead to different availability of resources for each type of year, since the same tractor has different available fieldwork days under different weather conditions. We prove that the model is sensitive to the greater income variability resulting from the use of alternative technologies and to the balance between income and risk, accounting for the probability of occurrence of each state of nature and giving an investment solution that considers the best production plan for each type of year. (c) 2005 Elsevier B.V. All rights reserved.