TAILIEUCHUNG - Using real options theory to analyze the impacts of urban development on farm real estate markets

This paper assesses the real option values of farmland using data from Ohio, USA. The option value of delaying the sale of a farm property was measured using an emerging, relatively new theory namely, the theory of real options pricing. | Turk J Agric For 29 (2005) 409-417 © TÜB‹TAK Using Real Options Theory to Analyze the Impacts of Urban Development on Farm Real Estate Markets Tamer IfiGIN* University of Harran, Faculty of Agriculture, Department of Agricultural Economics, fianl›urfa - TURKEY D. Lynn FORSTER The Ohio State University, 2120 Fyffe Road, Columbus, OH 43201-1067, USA Received: Abstract: This paper assesses the real option values of farmland using data from Ohio, USA. The option value of delaying the sale of a farm property was measured using an emerging, relatively new theory namely, the theory of real options pricing. As opposed to standard corporate finance theory, this new theory incorporates both the uncertainty about the future net benefits of a selling decision and the irreversibility of this action taken. Results from this option value calculation show that the vast majority of real call option values calculated for this sample are greater than zero, suggesting that deferring the decision to sell farmland is optimal for most Ohio landowners. The study then seeks to associate the impacts of urban development on Ohio farm-real estate with some important real option-determining factors suggested by the literature. To set forth this association, these option-determining factors were independently regressed on some urbanization-related variables to find out the relation between these variables. Results from this econometric analysis indicate that urban influences along with some farm and non-farm variables thought to be correlated with the land’s option value are all important factors affecting the value of the state’s farmland. Key Words: Real Options, Farmland, Option Value, Irriversibility, Uncertainty Gerçek Opsiyonlar Teorisini Kullanarak Kentleflmenin Tar›msal Arazi K›ymetlerine Olan Etkileri Üzerine Bir Analiz Özet: Bu araflt›rmada, Amerika’n›n Ohio Eyaletinde bulunan kiraya tutulmufl tar›m arazilerinden oluflan bir örne¤i kullanarak arazinin reel (gerçek) .

• Đầu tư Bất động sản
• Real Options
• Option Value
• State’s farmland
• Decision making
• Business strategies
• Innovation and investment project
• Method of real options
• Black Scholes option valuation model
• The binomial model
• Prices of real option
• Valuation methods of investment decisions
• Financial options
• Option valuation methods and AHP
• Real option valuation
• Options futures
• Other derivatives
• Volatility smiles
• Basic numerical procedures
• Numerical procedures
• Derivatives mishaps
• Principles of corporate finance
• Corporate finance
• Understanding options
• Valuing options
• Financial planning
• Working capital management
• Crporate restructuring
• Managing international risks
• Financial analysis
• Financial management
• Corporate governance
• Fundamental methods
• Capital projects
• Pitfalls in project appraisal
• Portfolio theory
• Asset pricing
• Long term financing
• Lease finance
• Capital structure
• Monte Carlo simulation
• Optimal options portfolio
• Defining optimal portfolios
• Interdependent real option
• Net present value
• Financial Futures
• Real Estate
• Currency Options
• Employee Options
• Brokerage Firms
• Technical Analysis
• Intermediate corporate finance
• Lecture Intermediate corporate finance
• Tài chính doanh nghiệp
• Payout policy
• Option valuation
• Raising equity capital
• Debt financing
• Finance management
• Fundamentals of finance management
• Capital budgeting
• Identifying embedded options
• Valuing real options in projects
• Evaluating projects
• Derivatives markets
• Exotic options
• Financial engineering
• Security design
• Corporate corporate
• Monte carlo valuation
• Phytoremediation
• Biofortification and Nanoparticles
• Absorption
• Transport and Control Mechanisms
• Defence Strategies
• Annual Plants
• Fundamentals of financial management
• Financial statement analysis
• Project risk
• Managerial options
• Định giá doanh nghiệp
• Phương pháp định giá doanh nghiệp
• Tài chính ngân hàng
• Thẩm định giá
• Giá trị doanh nghiệp
• nghiệp vụ tài chính
• dịch vụ tài chính
• kế hoạch tài chính
• tỷ số tài chính
• quản trị tài chính
• Overactive Bladder
• Diagnosis and Treatment
• Overactive Bladder Syndrome
• Surgical Options
• Preoperative Factors
• Option pricing
• Discrete time
• Continuous time
• Real options analysis
• Selected option applications
• Agency problems
• Corporate applications
• The lognormal distribution
• Finance a quantitative introduction
• A quantitative introduction
• Option pricing in continuous time
• Build to order
• Entry and exit
• Exchange rate uncertainty
• Rational expectations
• Default risk
• Modeling correlated default
• Convertible bonds
• Equity swaps
• Estimating the yield curve