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Probability Distributions Of Crop Prices, Yields, And Gross Revenue

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  • Tew, Bernard V.
  • Reid, Donald W.
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    Abstract

    This study shows that the price-yield correlation is a major influence in determining the skewness of revenue. Therefore, normality for revenue may not be rejected even if the price and/or yield distributions are significantly skewed. Analysis of cotton revenue for Mississippi shows that this can be the case empirically when the correlation between price and yield is moderately negative and the relative variability of yield and price is not too high. Hence, for crops produced in their major production regions where negative correlations between prices and yields are the greatest, revenue distributions may have a greater tendency toward normal.

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    File URL: http://purl.umn.edu/28827
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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Northeastern Journal of Agricultural and Resource Economics.

    Volume (Year): 17 (1988)
    Issue (Month): 2 (October)
    Pages:

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    Handle: RePEc:ags:nejare:28827

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    Web page: http://www.narea.org/
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    Related research

    Keywords: Crop Production/Industries;

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    Cited by:
    1. Hammida, Mustapha & Eidman, Vernon R., 1991. "Livestock And Poultry Production Risk In The United States," Staff Papers 14016, University of Minnesota, Department of Applied Economics.

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