A dynamic dual model under state-contingent production uncertainty
AbstractIn this paper we assess how production costs and capital accumulation patterns in agriculture have evolved over time, by paying special attention to the influence of risk. A dynamic state-contingent cost minimization approach is applied to assess production decisions in US agriculture over the last century. Results suggest the relevance of allowing for the stochastic nature of the production function which permits to capture both the differences in the costs of producing under different states of nature, the differences in the evolution of these costs over time, as well as the differential impacts of different states of nature on investment decisions.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 114th Seminar, April 15-16, 2010, Berlin, Germany with number 61353.
Date of creation: Apr 2010
Date of revision:
risk; state-contingent; dynamic model; investment decisions; Agricultural and Food Policy; Farm Management; Land Economics/Use; D21;
Other versions of this item:
- Teresa Serra & Spiro Stefanou & Alfons Oude Lansink, 2010. "A dynamic dual model under state-contingent production uncertainty," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(3), pages 293-312, September.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-22 (Agricultural Economics)
- NEP-ALL-2010-05-22 (All new papers)
- NEP-EFF-2010-05-22 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Risk and Sustainable Management Group Working Papers
151192, University of Queensland, School of Economics.
- Céline Nauges & Christopher J. O'Donnell & John Quiggin, 2011. "Uncertainty and technical efficiency in Finnish agriculture: a state-contingent approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(4), pages 449-467, October.
- Celine Nauges & Chris O'Donnell & John Quiggin, 2010. "Uncertainty and technical efficiency in Finnish agriculture: a state-contingent approach," Risk & Uncertainty Working Papers WPR10_2, Risk and Sustainable Management Group, University of Queensland.
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