Hedging with Trees: Tail-Hedge Discounting of Long-Term Forestry Returns

Arbeitspapier

Tail-hedge discounting is based on decomposition of returns from long-term investments in a fraction (gamma) that is correlated with consumption and another that is not. The first part is discounted at a discount rate that includes a risk premium, the other with the risk-free rate. We estimate gamma for forestry on Swedish data for stumpage prices and GDP per capita 1909- 2012. We demonstrate in three forestry cases that the result considerably changes the expected present value of long-term forestry investments.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2/2016

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Allocative Efficiency; Cost-Benefit Analysis ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Criteria for Decision-Making under Risk and Uncertainty ; Renewable Resources and Conservation: Forestry
• Thema: discounting ; far distant future ; declining discount rates ; forestry ; forest economics ; cost-benefit analysis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hultkrantz, Lars ; Mantalos, Panagiotis
• Ereignis: Veröffentlichung
• (wer): Örebro University School of Business
• (wo): Örebro
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/244517
• Letzte Aktualisierung: 2025-03-10T11:44:11+0100