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Management Strategies For Indonesian Small-Holder Rubber Production In South Sumatra: A Bioeconomic Analysis

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Author Info
Purnamasari, Ririn
Cacho, Oscar
Simmons, Phil
Abstract

A simplified version of the BEAM Rubber Agroforestry Model is embedded in a dynamic economic model to examine the impact of uncertainty about prices and climate on decision variables. Solutions, in terms of optimal levels for decision variables are found using a Monte Carlo stochastic framework. These solutions were used to derive risk-efficient frontiers corresponding to different levels of the decision variables. The results underline the importance of including uncertainty in dynamic bioeconomic systems since profits under uncertainty turned out to be quite different from those obtained with prices and climate assumed to be constant.

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File URL: http://purl.umn.edu/12936
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Publisher Info
Paper provided by University of New England, School of Economics in its series Working Papers with number 12936.

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Date of creation: 1999
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Handle: RePEc:ags:uneewp:12936

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Related research
Keywords: Bioeconomics; Stochastic analysis; Rubber; Indonesia; Production Economics; Risk and Uncertainty;

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  1. Cacho, O. J. & Bywater, A. C. & Dillon, J. L., 1999. "Assessment of production risk in grazing models," Agricultural Systems, Elsevier, vol. 60(2), pages 87-98, May. [Downloadable!] (restricted)
  2. Colin Barlow, 1982. "The Rubber Smallholder Economy," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 18(2), pages 86-119, July. [Downloadable!] (restricted)
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This page was last updated on 2009-12-26.

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