Privatization of forests : a real options approach
Author
Siyahhan, Baran
Advisor
Caner, Selçuk
Date
2005Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
This thesis analyzes the privatization of forests. It suggests that privatization
can be regarded as a real option. The thesis develops a model that determines
the optimal conditions for privatization of forests. Working in a real option
framework, I show that delaying privatization could have a positive value
attached to it and obtain the critical value at which the government privatizes
the forest. I also show that the fundamental variables in the economy such as
the interest rate and uncertainty can affect the decision to privatize.