The Optimal Timing for the Construction of an Airport

• Tipo: Resumo de Comunicação em Conferência Internacional
• Data: 2006

Autores

Paulo Jorge Pereira (Autor) FEP; Artur J. Rodrigues (Autor) FEP; Armada, Manuel R (Autor) FEP

Classificação Científica

FOS: Ciências sociais > Economia e gestão

Outras Informações

Resumo (PT): In this paper we study the option to invest in a new international airport, considering that the benefits of the investment behave stochastically. In particular, the number of passengers, and the cash flow per passenger are both assumed to be random. Additionally, positive and negative shocks are also incorporated, which seems to be realistic for this type of projects. Accordingly, we propose a new real options model which combines two stochastic factors with positive and negative shocks. While the authors developed this model having as reference the project for the new airport in Lisbon, the model can be applied to other airports investments, and, eventually with minimal adaptations, it can also be applied to projects in different areas.

Abstract (EN): In this paper we study the option to invest in a new international airport, considering that the benefits of the investment behave stochastically. In particular, the number of passengers, and the cash flow per passenger are both assumed to be random. Additionally, positive and negative shocks are also incorporated, which seems to be realistic for this type of projects. Accordingly, we propose a new real options model which combines two stochastic factors with positive and negative shocks. While the authors developed this model having as reference the project for the new airport in Lisbon, the model can be applied to other airports investments, and, eventually with minimal adaptations, it can also be applied to projects in different areas.

Idioma: Português

Tipo (Avaliação Docente): Científica

Notas: http://realoptions.org/abstracts_2006.html