The economic threshold with a stochastic pest population: A real options approach

American Journal of Agricultural Economics

Volumn 82, Issue 3, 2000, Pages 541-555

  Saphores, Jean Daniel M ^a  

^a UNIVERSITÉ LAVAL   (Canada)

Author keywords

Pest control; Real options; Reentry; Uncertainty

Indexed keywords

ECONOMIC ANALYSIS; PEST CONTROL; STOCHASTIC PROCESS; UNCERTAINTY ROLE;

EID: 0033865161     PISSN: 00029092     EISSN: None     Source Type: Journal    
DOI: 10.1111/0002-9092.00045     Document Type: Article

References (30)

1. Arrow, K.J., and A.C. Fisher. "Environmental Preservation, Uncertainty, and Irreversibility." Quart. J. Econ. 88(1974):312-19.
2. Carlson, G.A., and M.E. Wetzstein. "Pesticide and Pest Management." Agriculture and Resource Economic. D. Zilberman, G.A. Carlson, and J.A. Miranowski, eds., pp. 268-318. New York: Oxford University Press, 1993.
3. Casella, G., and R.L. Berger. Statistical Inference. Pacific Grove CA: Wadsworth & Brooks/Cole Advanced Books & Software, 1990.
4. Cox, D.R., and H.D. Miller. The Theory of Stochastic Processes. London: Chapman & Hill, 1995.
5. Crank, J. Free and Moving Boundary Problems. London: Oxford University Press, 1984.
6. Croft, B.A., S.C. Hoyt, and P.H. Westigard. "Spider Mite Management on Pome Fruit Revisited: Organotin and Acaricide Resistance Management." J. Econ. Entomol. 80(1987):304-11.
7. Dixit, A.K., and R.S. Pindyck. Investment under Uncertainty. Princeton NJ: Princeton University Press, 1994.
8. Edwards, C.A., and G.W. Heath, eds. The Principles of Agricultural Entomology. Springfield IL: Charles C. Thomas, 1964.
9. Feder, G. "Pesticides, Information, and Pest Management under Uncertainty." Amer. J. Agr. Econ. 61(1979):97-103.
10. Fernandez-Cornejo, J., S. Jans, and M. Smith. "Issues in the Economics of Pesticide Use in Agriculture: A Review of the Empirical Evidence." Rev. Agr. Econ. 20(1998):462-88.
11. Fox, G., and A. Weersink. "Damage Control and Increasing Returns." Amer. J. Agr. Econ. 77(February 1995):33-39.
12. Francesconi, A.H.D., A.N. Lakso, J.P. Nyrop, J. Barnard, and S.S. Denning. "Carbon Balance as a Physiological Basis for the Interactions of European Red Mite and Crop Load on Starkrimson Delicious Apple Trees." J. Amer. Soc. Hort. Sci., forthcoming.
13. Gotsch, N., and U. Regev. "Fungicide Use under Risk in Swiss Wheat Production." Agr. Econ. 14(1996):1-9.
14. Hall, D.C., and R.B. Norgaard. "On the Timing and Application of Pesticides." Amer. J. Agr. Econ. 55(May 1973):198-201.
15. Headley, J.C. "Defining the Economic Threshold." Pest Control Strategies for the Future. Agricultural Board ed., pp. 100-108. Washington DC: Ag. Board, 1972.
16. Hennessy, D.A. "Damage Control and Increasing Returns: Further Results." Amer. J. Agr. Econ. 79(August 1997):786-91.
17. Hillebrandt, P.M. "The Economic Theory of the Use of Pesticides. Part 1: The Dosage Response Curve, the Rate of Application, and the Area to be Treated." J. Agr. Econ. 13(1960):464-72.
18. Karlin, S., and H.M. Taylor. A Second Course in Stochastic Processes. New York: Academic Press, 1981.
19. Lichtenberg, E., R.C. Spear, and D. Zilberman. "The Economics of Reentry Regulation of Pesticides." Amer. J. Agr. Econ. 75(November 1993):946-58.
20. Malliaris, A.G., and W.A. Brock. Stochastic Methods in Economics and Finance. New York: North-Holland, 1982.
21. Mangel, M. Decision and Control in Uncertain Resource Systems. Orlando FL: Academic Press, 1985.
22. Moffit, L.J. "Risk-Efficient Thresholds for Pest Control Decisions." J. Agr. Econ. 37(1986):69-75.
23. Moffit, L.J., D.C. Hall, and C.D. Osteen. "Economic Threshold under Uncertainty with Application to the Corn Nematode Management." S. J. Agr. Econ. 16(December 1984):151-57.
24. Nyrop, J.P., M.R. Binns, W. Van der Werf, and J. Kovach. "Cascading Tripartite Binomial Classification Plans to Monitor European Red Mite (Acari, Tetranychidae) through a Season; Development and Evaluation of a New Methodology for Pest Monitoring." Exp. Appl. Acarol. 18(1994):123-53.
25. Poston, F.L., L.P. Pedigo, and S.M. Welch. "Economic Injury Levels: Reality and Practicality." Bull. ESA (Spring 1983):49-53.
26. Regev, U., H. Shalit, and A.P. Gutierrez. "On the Optimal Allocation of Pesticides with Increasing Resistance: The Case of Alfalfa Weevil." J. Environ. Econ. and Manage. 10(1983): 86-100.
27. Shoemaker, C. "Optimization of Agricultural Pest Management III: Results and Extensions of a Model." Math. Biosci. 18(October 1973): 1-22.
28. Stern, V.M., R.E. Smith, R. van den Bosch, and K.S. Hagen. "The Integrated Control Concept." Hilgardia 29(1959):81-101.
29. Trigeorgis, L. Real Options: Managerial Flexibility and Strategy in Resource Allocation. Cambridge MA: MIT Press, 1996.
30. Wilmott, P., S. Howison, and J. Dewynne. The Mathematics of Financial Derivatives, A Student Introduction. Cambridge UK: Cambridge University Press, 1995.