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Farm-level investment analysis: what discount rate to use?

Author

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  • Koppenberg, Maximilian
  • Spiegel, Alisa

Abstract

A discount rate is based on different aspects and differs across regions, economic sectors, investment projects, and decision makers. The choice of a discount rate requires a fundamental analysis and argumentation, in order to avoid an under- or overestimation of investment projects. Having conducted a farm-level experiment in North-Rhine Westphalia (NRW, Germany), we estimated the current discount rates in German agriculture, as well as quantify the effects of different factors on discount rate.

Suggested Citation

  • Koppenberg, Maximilian & Spiegel, Alisa, "undated". "Farm-level investment analysis: what discount rate to use?," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 262167, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi17:262167
    DOI: 10.22004/ag.econ.262167
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    References listed on IDEAS

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