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  • 1990-1994  (2)
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  • 1
    Publication Date: 1994-02-01
    Description: One of the most common ways to account for investment risk is to add a risk premium to the risk-free discount rate when computing present values of expected revenues which are uncertain. Using certainty-equivalent analysis, we show that the correct risk premium for short-term investments can easily be in the commonly used 7-percentage-point range. But for such risk premiums to be appropriate for long-term forestry investments, the necessary certainty-equivalent conditions often seem to be unreasonably restrictive. Results suggest that the appropriate risk premium may decline with lengthening payoff period for many forest investments. Limited empirical data provide tentative support, but more research is needed to resolve the issue. We review policy implications and suggest areas for further research.
    Print ISSN: 0045-5067
    Electronic ISSN: 1208-6037
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition
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  • 2
    Publication Date: 1990-11-01
    Description: This study explores the relationship between the number of foresters providing assistance to nonindustrial private forest (NIPF) owners in the southern United States and the NIPF acres planted with pine. For the year 1985, for 29 substate zones in 12 southern states, data were gathered on numbers of NIPF assistance foresters by four types, NIPF acres planted with pine, and several other variables thought to influence levels of pine planting. Using this data, a cross-sectional regression analysis was unable to demonstrate a significant south-wide effect of technical assistance on NIPF tree planting when all significant variables were included in the equations. Within the range of data gathered, equations showed that additional cost sharing and the accompanying forestry assistance should increase reforestation, but added forestry assistance alone is less likely to influence reforestation. Some previous studies support our results, others do not. In the future, if better data on the relevant variables are gathered, more definitive conclusions might be reached about the effects of technical assistance on NIPF reforestation.
    Print ISSN: 0045-5067
    Electronic ISSN: 1208-6037
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
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