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A Simple Procedure to Evaluate Ex Ante Producer Welfare under Price Uncertainty

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  • Yacov Tsur

Abstract

A simple procedure is proposed for evaluating producer welfare under price uncertainty. The method is derived under the assumption of constant absolute risk aversion in which risk preferences depend on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties.

Suggested Citation

  • Yacov Tsur, 1993. "A Simple Procedure to Evaluate Ex Ante Producer Welfare under Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 44-51.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:1:p:44-51.
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    File URL: http://hdl.handle.net/10.2307/1242952
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    References listed on IDEAS

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    1. Rulon D. Pope & Jean-Paul Chavas, 1985. "Producer Surplus and Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 853-869.
    2. Douglas M. Larson, 1988. "Exact Welfare Measurement for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 597-603.
    3. Rulon Pope & Jean-Paul Chavas & Richard E. Just, 1983. "Economic Welfare Evaluations for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 98-107.
    4. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
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    1. Bullock, David S. & Garcia, Philip & Shin, Kie-Yup, 2005. "Measuring producer welfare under output price uncertainty and risk non-neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21.

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