Transaction Costs and the Present Value "Puzzle" of Farmland Prices
نویسندگان
چکیده
منابع مشابه
Transaction Costs and Shadow Prices in Discrete Time
For portfolio choice problems with proportional transaction costs, we discuss whether or not there exists a shadow price, i.e., a least favorable frictionless market extension leading to the same optimal strategy and utility. By means of an explicit counter-example, we show that shadow prices may fail to exist even in seemingly perfectly benign situations, i.e., for a log-investor trading in an...
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Government agencies in urbanizing areas are increasingly utilizing purchase and transfer of development rights programs to preserve farmland and protect local farm economies.This article tests the effect of development restrictions imposed by permanent easement sales on farmland sales prices, using Maryland data. We correct for selectivity bias due to the voluntary nature of these programs in e...
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The aim of this study is to investigate the effects of outside board on rm value in Tehran Stock Exchange (TSE) from the perspective of information transaction costs. To do so, a sample of 96 firms listed in TSE is selected to be studied during the period of 2003-2012. Tobin q ratio is used to measure rm's value and bid-ask spread for information transaction costs. In addition to these variable...
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In this era of globalization we see an increase in specialization: the production chain is split up in more and more parts and the production of these parts is outsourced to those places in the world where production is relatively the cheapest and most efficient. This implies that transaction costs, associated with the coordination of production and trade in parts and components, become increas...
متن کاملOn using shadow prices in portfolio optimization with transaction costs
In frictionless markets, utility maximization problems are typically solved either by stochastic control or by martingale methods. Beginning with the seminal paper of Davis and Norman [Math. Oper. Res. 15 (1990) 676–713], stochastic control theory has also been used to solve various problems of this type in the presence of proportional transaction costs. Martingale methods, on the other hand, h...
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ژورنال
عنوان ژورنال: Southern Economic Journal
سال: 2002
ISSN: 0038-4038
DOI: 10.2307/1061717