haku: @indexterm adjustment costs / yhteensä: 31
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| Tekijä: | Kelly, D.L. |
| Otsikko: | Adjustment costs from environmental change |
| Lehti: | Journal of Environmental Economics and Management
2005 : NOV, VOL. 50:3, p. 468-495 |
| Asiasana: | adjustment costs change climate environment learning uncertainty |
| Kieli: | eng |
| Tiivistelmä: | This paper discusses a case whereby the distribution of a firm's productivity shocks changes without the knowledge of the firm. Over time the firm learns about the nature and extent of the change in the distribution of the shock and adjusts, incurring adjustment costs in the process. The authors also estimate a restricted profit function for agricultural land in a five-state region of the MIdwest US as a function of prices, land characteristics, actual weather realizations and expected weather. The authors also simulate the effect of an unobserved climate shock, where learning about the climate shock is by observing the weather and updating prior knowlege using Bayes Rule. It is shown that adjustment costs to climate change are 1.4% of annual land rents. |
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