Measuring sunk costs in agricultural and food industry assets: why some assets sell below appraisal

K-REx Repository

Show simple item record

dc.contributor.author Boland, Michael A.
dc.contributor.author Crespi, John M.
dc.contributor.author Turner, Tracy M.
dc.date.accessioned 2015-05-11T14:18:14Z
dc.date.available 2015-05-11T14:18:14Z
dc.date.issued 2015-05-11
dc.identifier.uri http://hdl.handle.net/2097/19240
dc.description.abstract Asset obsolescence or external obsolescence is a decline in the economic value of capital because of a decrease in demand for the capital’s services. Measurements of sunk costs typically use appraised values of capital. In food and agricultural industries facing asset obsolescence due to government policy, appraised values may be greatly overstated and this has implications for research on industrial structure. A theoretical model to account for the appraisal error is developed and the method is applied to the U.S. sugar beet industry. The sugar beet industry displays symptoms of asset obsolescence. Our estimates indicate that plant appraisals using currently accepted practices greatly overstated the true value of these assets in 2006. en_US
dc.language.iso en_US en_US
dc.relation.uri http://www.degruyter.com/view/j/jafio.2014.12.issue-1/jafio-2014-0009/jafio-2014-0009.xml en_US
dc.rights The final publication is available at www.degruyter.com en_US
dc.subject Sunk costs en_US
dc.subject Obsolescence en_US
dc.subject Real estate appraisal en_US
dc.subject Stranded capital en_US
dc.subject Sugar beet en_US
dc.title Measuring sunk costs in agricultural and food industry assets: why some assets sell below appraisal en_US
dc.type Article (publisher version) en_US
dc.date.published 2014 en_US
dc.citation.doi doi:10.1515/jafio-2014-0009 en_US
dc.citation.epage 63 en_US
dc.citation.issue 1 en_US
dc.citation.jtitle Journal of Agricultural & Food Industrial Organization en_US
dc.citation.spage 53 en_US
dc.citation.volume 12 en_US
dc.contributor.authoreid jcrespi en_US
dc.contributor.authoreid turner en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search K-REx


Advanced Search

Browse

My Account

Statistics








Center for the

Advancement of Digital

Scholarship

118 Hale Library

Manhattan KS 66506


(785) 532-7444

cads@k-state.edu