Valuing New Random GM Traits: The Case of Drought Tolerant Wheat
AbstractThere has been an increase in support for developing genetic modification (GM) technology in wheat. The purpose of this paper was to develop an analytical model to analyze the value of GM traits at different phases of development. To do so we developed a stochastic binomial model of real options. The results indicate that the value of drought tolerant wheat using GM technology is in-the-money at each phase of development. The greatest value would accrue to the Prairie Gateway and northern Great Plains regions in the United States.
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Bibliographic InfoPaper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 128033.
Date of creation: Jun 2012
Date of revision:
Crop Production/Industries; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shi, Guanming & Chavas, Jean-Paul & Steigert, Kyle, 2009.
"An Analysis of the Pricing of Traits in the U.S. Corn Seed Market,"
Staff Paper Series
544, University of Wisconsin, Agricultural and Applied Economics.
- Guanming Shi & Jean-paul Chavas & Kyle Stiegert, 2010. "An Analysis of the Pricing of Traits in the U.S. Corn Seed Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1324-1338.
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