Specification and Estimation of the Real Options Markup: The Case of Tanker Markets
نویسندگان
چکیده
We propose structural models of investment for the econometric estimation of the real option markup. Count data models offer flexible specifications for bringing real option investment models to aggregate market data. The empirical results for oil tanker investment data are supportive for the proposed structural models, as well as the real option hypothesis. We find that the sensitivity of investment to the real option rule is much higher than expected. Finally, this framework may be applied for any industry and provides a “trading volume” model for investment activity. JEL Codes: C21, C31, C51 and C52, D21, D53
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