The effect of quasi-hyperbolic discounting on rural land conversion timing

Matthew Salois

Applied Economics Letters, 2012, vol. 19, issue 9, 887-890

Abstract: This article explores how the presence of a quasi-hyperbolic discount parameter in a land investment model can affect conversion times for undeveloped rural land. A simple model of land development is compared using both exponential discounting and quasi-hyperbolic discounting. The presence of quasi-hyperbolic discounting tends to increase the rate of land conversion and may lead to possible overdevelopment of rural lands.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:19:y:2012:i:9:p:887-890

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DOI: 10.1080/13504851.2011.607119

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