한국 농지의 옵션가치와 농지가격

Abstract

This paper analyzes agricultural land option values in Korea. Conventional approach to valuing land such as the present value model tends to misrepresent land price observed since it dismisses the option values for land sales. A real option approach with a random walk of the agricultural revenue is presented to analyze a farmer's land purchase decision. The resultant solution with optimal threshold for land purchases is empirically analyzed. Numerical solution using the Gyongbuk local data supports the existence of option values prevalent in land prices.