A multi-index extension of the beta agricultural evaluation method.

Abstract

The aim of this paper is the study and generalization of the method of the two distribution functions, used in the theory of valuation and, more concretely, in the agrarian valuations. The basic foundation of this method, proposed by Ballestero (1973), is the use of a representative index of the asset that we try to value and in the acceptance of a series of hypotheses on the distribution of the variable index and of the variable value of the asset. Until this moment and in all the works published on this method, the limitation of using a single index (although this is a synthesis of several to which it tries to represent) has remained. In this work it is presented a method that generalizes the previous one and that allows us to work with more than an index, so that it is possible not only to determine the value of an asset with reference to an index but to several ones. The method allows to work with different distribution functions of those used to treat the risk and it presents a test of acceptance of the functions used to model the indexes. Finally, a practical case is developed.