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Using Non-Contemporaneous Data To Specify Risk Programming Models

Author

Listed:
  • Tew, Bernard V.
  • Musser, Wesley N.
  • Smith, G. Scott

Abstract

Specification of the variance-covariance matrix holds continuing interest for agricultural economists considering risk programming applications. This research examines alternative expected value-variance (E-V) frontiers constructed using contemporaneous and non-contemporaneous data and two statistical assumptions concerning crop prices and yields. Empirical examples from two locations for different crops illustrate the various assumptions. Considerable differences in the E-V efficient frontiers occur in both empirical settings.

Suggested Citation

  • Tew, Bernard V. & Musser, Wesley N. & Smith, G. Scott, 1988. "Using Non-Contemporaneous Data To Specify Risk Programming Models," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(1), pages 1-6, April.
    • Handle: RePEc:ags:nejare:29066
    DOI: 10.22004/ag.econ.29066
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    References listed on IDEAS

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    1. Musser, Wesley N. & Tew, Bernard V., 1984. "Use Of Biophysical Simulation In Production Economics," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-10, July.
    2. Bryan Schurle & Bernard L. Erven, 1979. "Sensitivity of Efficient Frontiers Developed for Farm Enterprise Choice Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 506-511.
    3. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, July.
    4. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    5. Tew, Bernard V. & Boggess, William G., 1984. "Risk-Return Assessment of Irrigation Decisions in Humid Regions: An Extension," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 159-160, December.
    6. Tew, Bernard V. & Boggess, William G., 1984. "Risk-Return Assessment Of Irrigation Decisions In Humid Regions: An Extension," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-2, December.
    7. Dixon, Bruce L. & Barry, Peter J., 1983. "Portfolio Analysis Considering Estimation Risk And Imperfect Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-9, December.
    8. Boggess, W. G. & Lynne, G. D. & Jones, J. W. & Swaney, D. P., 1983. "Risk-Return Assessment of Irrigation Decisions in Humid Regions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 15(1), pages 135-143, July.
    9. Anne E. Peck, 1975. "Hedging and Income Stability: Concepts, Implications, and an Example," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 410-419.
    10. Boggess, William G. & Lynne, Gary D. & Jones, James W. & Swaney, D.P., 1983. "Risk-Return Assessment Of Irrigation Decisions In Humid Regions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-9, July.
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    Cited by:

    1. Musser, Wesley N., 1992. "A Historical Overview of Estimation of Historical Risk Coefficients," 1992 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk Meeting, March 22-25, 1992, Orlando, Florida 307862, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    2. Wetzstein, Michael E. & Musser, Wesley N. & McClendon, Ronald W. & Edwards, David M., 1990. "A Case Study of Timeliness in the Selection of Risk-Efficient Machinery Complements," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 165-177, December.

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    Keywords

    Risk and Uncertainty;

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