IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v7y1980i2p147-175..html
   My bibliography  Save this article

A computerised planning method for risky investments

Author

Listed:
  • WILHELM BRANDES
  • HANS-JOACHIM BUDDE
  • EBERHARD SPERLING

Abstract

In general, investment decisions are more risky than decisions concerning annual production. Until now no method appears to have been available to assist farmers in evaluating investment risk. While pragmatic methods must be refuted for theoretical reasons, methods based on programming or optimising simulation are too costly. To bridge this gap, COMPRI(= COMputerised Planning of Risky Investments) has been developed. The method aims at evaluating a limited number of investments considered by the farmer. It is a combination of risk analysis and multiperiod farm development planning. COMPRI allows for the treatment of the consumption pattern of the entrepreneur as well as for his specific tax and financial situation. Important decision criteria are parameters of the distribution functions for the present value of the investments and for owner's equity at the end of the planning period. A standardised method, COMPRI can be applied to a variety of investment problems.

Suggested Citation

  • Wilhelm Brandes & Hans-Joachim Budde & Eberhard Sperling, 1980. "A computerised planning method for risky investments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 7(2), pages 147-175.
    • Handle: RePEc:oup:erevae:v:7:y:1980:i:2:p:147-175.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/7.2.147
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Palatnik, Ruslana Rachel & Freer, Mikhail & Levin, Mark & Golberg, Alexander & Zilberman, David, 2023. "Algae-Based Two-Stage Supply Chain with Co-Products," Ecological Economics, Elsevier, vol. 207(C).
    2. Kostrova, Alisa & Britz, Wolfgang & Djanibekov, Utkur & Finger, Robert, 2016. "Monte-Carlo Simulation and Stochastic Programming in Real Options Valuation: the Case of Perennial Energy Crop Cultivation," Discussion Papers 250253, University of Bonn, Institute for Food and Resource Economics.
    3. Uwe Kehrel & Walter Schmitting, 2008. "Jenseits der Grenzen der klassischen Investitionsrechnung: Integration von Vollständigen Finanzplänen, flexibler Planung und Simulation," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 19(1), pages 59-83, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:7:y:1980:i:2:p:147-175.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.