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Assessing The Financial Risks Of Diversified Coffee Production Systems: An Alternative Nonnormal Cdf Estimation Approach

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  • Ramirez, Octavio A.
  • Sosa, Romeo

Abstract

Recently developed techniques are adapted and combined for the modeling and simulation of crop yields and prices that can be mutually correlated, exhibit heteroskedasticity or autocorrelation, and follow nonnormal probability density functions. The techniques are applied to the modeling and simulation of probability distribution functions for the returns of three tropical agroforestry systems for coffee production. The importance of using distribution functions that can more closely reflect the statistical behavior of yields and prices for risk analysis is discussed and illustrated.

Suggested Citation

  • Ramirez, Octavio A. & Sosa, Romeo, 2000. "Assessing The Financial Risks Of Diversified Coffee Production Systems: An Alternative Nonnormal Cdf Estimation Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-19, July.
    • Handle: RePEc:ags:jlaare:30838
    DOI: 10.22004/ag.econ.30838
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    Cited by:

    1. Atallah, Shady S. & Gómez, Miguel I. & Jaramillo, Juliana, 2018. "A Bioeconomic Model of Ecosystem Services Provision: Coffee Berry Borer and Shade-grown Coffee in Colombia," Ecological Economics, Elsevier, vol. 144(C), pages 129-138.
    2. Fleming, Euan & Milne, Mary, 2003. "Bioeconomic modelling of the production and export of cocoa for price policy analysis in Papua New Guinea," Agricultural Systems, Elsevier, vol. 76(2), pages 483-505, May.
    3. Javier Alejandro López Aguilar, 2016. "Efectos potenciales de los certificados ambientales sobre la cobertura forestal de los cafetales en México," Graduate theses (Spanish) TESG 012, CIDE, División de Economía.
    4. Ramirez, Octavio A. & Somarriba, Eduardo, 2000. "Risk And Returns Of Diversified Cropping Systems Under Nonnormal, Cross-, And Autocorrelated Commodity Price Structures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-16, December.

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