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The Timing of Land Development: An Invariance Result
Author(s) -
Batabyal Amitrajeet A.
Publication year - 1996
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243865
Subject(s) - arrow , development (topology) , land development , land tenure , period (music) , econometrics , markov chain , invariant (physics) , land use , economics , computer science , geography , mathematics , statistics , engineering , civil engineering , mathematical analysis , agriculture , physics , archaeology , acoustics , programming language , mathematical physics
The Arrow‐Fisher‐Henry (AFH) analysis of land development under uncertainty has been conducted in a two‐period model. Recently, Capozza and Helsley (1990) and Batabyal (1995) have addressed the question of land development under uncertainty in a many‐period setting. In this paper, aspects of this literature are extended by analyzing the land development question in a Markov decision theoretic framework. Inter alia , it is shown that the timing of land development is invariant to the manner in which a landowner uses information about the consequences of development.
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