IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v67y1985i3p654-659..html
   My bibliography  Save this article

Production Risk and Optimal Fertilizer Rates: A Random Coefficient Model

Author

Listed:
  • Joyotee Smith
  • Gloria Umali

Abstract

This paper demonstrates that low levels of fertilizer use on rainfed rice in the Philippines cannot be attributed to production risk. A random coefficient model estimated the objective probability distribution of yield. This was incorporated into a utility-maximization framework to predict that moderately risk-averse farmers would apply only seven to ten kilograms less than the profit-maximizing N-rate. Previous studies have established that risk was not a major impediment to fertilizer use in irrigated areas. This paper extends this conclusion to rainfed rice production in the Philippines.

Suggested Citation

  • Joyotee Smith & Gloria Umali, 1985. "Production Risk and Optimal Fertilizer Rates: A Random Coefficient Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 654-659.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:3:p:654-659.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1241089
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Kwansoo & Barham, Bradford L. & Coxhead, Ian, 2001. "Measuring soil quality dynamics: A role for economists, and implications for economic analysis," Agricultural Economics, Blackwell, vol. 25(1), pages 13-26, June.
    2. Abedullah & Pandey, Sushil, 2004. "Risk and Fertilizer Use in the Rainfed Rice Ecosystem of Tarlac, Philippines," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-10, April.
    3. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    4. Hurley, Terrance M., 2010. "A review of agricultural production risk in the developing world," Working Papers 188476, HarvestChoice.
    5. Obwana, M.B. & Kalirajan, K.P. & Shand, R.T., 1997. "On Measuring Farmer-Specific and Input-Specific Allocative Efficiency," 1997 Occasional Paper Series No. 7 198063, International Association of Agricultural Economists.
    6. Tristan Le Cotty & Elodie Maître d'Hôtel & Moctar Ndiaye & Sophie S. Thoyer, 2021. "Input use and output price risks: the case of maize in Burkina Faso [Utilisation d'intrants et risques de prix : le cas du maïs au Burkina Faso]," Working Papers hal-03252026, HAL.
    7. Fuglie, Keith O., 1988. "Fertilizer Use And The Adoption Of Modern Varieties In An Asian Rainfed Rice Farming System," Staff Papers 13733, University of Minnesota, Department of Applied Economics.
    8. Hailemariam Teklewold & Alemu Mekonnen & Gunnar Kohlin & Salvatore Di Falco, 2017. "Does Adoption Of Multiple Climate-Smart Practices Improve Farmers’ Climate Resilience? Empirical Evidence From The Nile Basin Of Ethiopia," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-30, February.
    9. Antle, John M. & Crissman, Charles C., 1986. "Risk Attitude Estimation By Econometric Methods: Evidence From India And The Philippines," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271814, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    10. Abedullah & Sushil Pandey, 2007. "The Value of Rainfall Forecasts in the Rainfed Rice Areas of the Philippines," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 69-81, Jul-Dec.
    11. Epplin, Francis M. & Berte, Kama & Krenzer, Eugene G., Jr. & Heer, William F., 1988. "Influence of Alternative Planting Dates and Tillage Systems on Winter Wheat Production Response: A Random Coefficients Approach," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270307, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Kim, Kwansoo & Barham, Bradford L. & Coxhead, Ian, 1997. "The Evolution of Agricultural Soil Quality: A methodology for measurement and some land market implications," Staff Papers 200596, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    13. T. Antoniadou & D. Wallach, 2002. "Evaluating optimal fertilizer rates using plant measurements," Journal of Applied Statistics, Taylor & Francis Journals, vol. 29(7), pages 1083-1099.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:67:y:1985:i:3:p:654-659.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.