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Estimating The Risk Of Alternate Techniques: Nitrogenous Fertilization Of Rice In The Philippines

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  • Roumasset, James A.

Abstract

The problem investigated is how to estimate expected profits and the risk of using nitrogenous fertilizer for purposes of making fertilizer recommendations and explaining farmer decisions. Three inappropriate methods are discussed and a new method is developed which combines experimentally determined production functions with cross-section data on crop damages. For the Philippine situation analyzed, it appears that using the amount of nitrogen fertilizer which maximizes expected profits does not substantially increase the risk above low nitrogen levels. This finding casts doubt on the hypothesis that farmers' reluctance to use modern techniques is due to their aversion to risk.

Suggested Citation

  • Roumasset, James A., 1974. "Estimating The Risk Of Alternate Techniques: Nitrogenous Fertilization Of Rice In The Philippines," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(04), pages 1-38, December.
    • Handle: RePEc:ags:remaae:9144
    DOI: 10.22004/ag.econ.9144
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    References listed on IDEAS

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    Cited by:

    1. Briones, Roehlano M., 2016. "Inadequate N Application of Rice Farmers in the Philippines: Problems, Causes, Solutions," Discussion Papers DP 2016-01, Philippine Institute for Development Studies.
    2. Briones, Roehlano M., 2016. "Inadequate N Application of Rice Farmers in the Philippines: Problems, Causes, Solutions," Research Paper Series DP 2016-01, Philippine Institute for Development Studies.
    3. Freudenreich, Hanna & Musshoff, Oliver & Wiercinski, Ben, 2017. "The Relationship between Farmers' Shock Experiences and their Uncertainty Preferences - Experimental Evidence from Mexico," GlobalFood Discussion Papers 256212, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Menz, Kenneth M., 1975. "Estimating The Risk Of Alternate Techniques: Nitrogenous Fertilization Of Rice In The Philippines-Comment," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 43(03), pages 1-3, September.
    5. Griffiths, William E. & Anderson, Jock R. & Hamal, K.B., 1987. "Subjective Distributions As Econometric Response Data," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(2), pages 1-15, August.
    6. Griffin, Ronald C. & Rister, M. Edward & Montgomery, John M. & Turner, Fred T., 1985. "Scheduling Inputs With Production Functions: Optimal Nitrogen Programs For Rice," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(1), pages 1-10, July.

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