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Drought policy: A state-contingent view

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Author Info
John Quiggin () (Department of Economics, University of Queensland)
Robert G. Chambers () (Dept of Agricultural and Resource Economics, University of Maryland, College Park)

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Abstract

The standard approach to modelling production under uncertainty has relied on the concept of the stochastic production. In this paper, it is argued that a state-contingent production model is more flexible and realistic. The model is applied to the problem of drought policy.

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File URL: http://www.uq.edu.au/rsmg/WP/WPM03_1.pdf
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Publisher Info
Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WPM03_1.

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Date of creation: Aug 2003
Date of revision: Aug 2003
Handle: RePEc:rsm:murray:m03_1

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Web page: http://www.uq.edu.au/economics/rsmg/index.htm
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Related research
Keywords: Drought production uncertainty

Other versions of this item:

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

Cited by:
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  1. David Adamson & Thilak Mallawaarachchi & John Quiggin, 2005. "Modelling basin level allocation of water in the Murray Darling Basin in a world of uncertainty," Murray-Darling Program Working Papers WPM05_1, Risk and Sustainable Management Group, University of Queensland. [Downloadable!]
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