Applications of the real options approach hardly consider investment returns to be the result of competitive markets such as markets for agricultural products. The reason is probably that Dixit and Pindyck (1994, ch. 8) show in their very popular book "Investment under Uncertainty" that the...

Due to Germany’s specific farm structure, the progressive modulation of direct payments decided within the Health Check of the Common Agricultural Policy (CAP) is of particular relevance for German agriculture. In this paper we apply the agent-based model AgriPoliS to shed some light on the...

Changes in the political, economic and legal framework after reunification led to major structural changes in East German agriculture. Altered factor and product price relations, abolition of traditional channels of distribution and problems with liquidity forced existing farms to adjust their...

Changes in the political, economic and legal framework after reunification led to major structural changes in East German agriculture. Altered factor and product price relations, abolition of traditional channels of distribution and problems with liquidity forced existing farms to adjust their...

Within the reformed CAP, Germany decided to support small and young farmers by higher hectare payments. Because of heterogeneous farm structures with smaller farms in the south and large in the east, this causes regional redistributions. Agent-based simulations show that these policies create...

This paper aims to identify drivers of physical capital adjustments in agriculture. It begins with a review of some of the most important theories and modelling approaches regarding firms’ adjustments of physical capital, ranging from output-based models to more recent approaches that consider...