MIAO, RUIQING; HENNESSY, DAVID A.; FENG, HONGLI - Agricultural and Applied Economics Association - AAEA - 2013
We develop a real option model of the irreversible native grassland conversion decision. Upon plowing, native grassland can be followed by either a permanent cropping system or a system in which land is put under cropping (respectively, grazing) whenever crop prices are high (respectively, low)....