Economic Hysteresis in Variety Selection
| dc.creator | Richards, Timothy J. | |
| dc.creator | Green, Gareth P. | |
| dc.date | 2017-04-01T18:00:45Z | |
| dc.date.accessioned | 2026-07-09T04:28:12Z | |
| dc.description | Investing in a new perennial crop variety involves an irreversible commitment of capital and generates an uncertain return stream. As a result, the decision to adopt a new variety includes a significant real option value. Waiting for returns to rise above this real option causes a delay in adoption because of economic hysteresis. This study tests for hysteresis in the adoption of wine grape varieties using a sample of district-level data from the state of California. The empirical results show a significant hysteretic effect in wine grape investment, which might be reduced by activities that smooth earnings over time. | |
| dc.identifier | doi:10.22004/ag.econ.37310 | |
| dc.identifier | https://ageconsearch.umn.edu/record/37310/files/Richards%20JAAE%20April%202003.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/37310 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/550399 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/37310 | |
| dc.title | Economic Hysteresis in Variety Selection | |
| dc.type | Text |