IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v49y1967i4p869-880..html
   My bibliography  Save this article

Representation of Farmers' Behavior under Uncertainty with a Focus-Loss Constraint

Author

Listed:
  • Jean-Marc Boussard
  • Michel Petit

Abstract

This article presents a method for taking uncertainty into account when representing farmers' production decisions. The main assumption is that farmers maximize their profit provided that the possibility of ruin is negligible. The possibility of ruin is viewed as being closely related to Shackle's focus of loss. Results of a study incorporating the analytical apparatus developed from this assumption are given here. In the particular case of farmers in southern France, the results lend support to the proposed procedure, in spite of the arbitrariness involved in estimating some parameters, and particularly the foci of loss.

Suggested Citation

  • Jean-Marc Boussard & Michel Petit, 1967. "Representation of Farmers' Behavior under Uncertainty with a Focus-Loss Constraint," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(4), pages 869-880.
  • Handle: RePEc:oup:ajagec:v:49:y:1967:i:4:p:869-880.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1236943
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. de Haen, H., 1976. "Kapitalbildung und privater Konsum von Landwirten bei unsicheren Einkommenserwartungen," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 13.
    2. Schnitkey, Gary D. & Taylor, C. Robert, 1987. "Conventional Capital Budgeting Versus Stochastic Dynamic Analysis Of Optimal Farmland Purchase And Sell Decisions," Illinois Agricultural Economics Staff Paper 244662, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    3. Kögl, H., 1978. "Integrierte Finanz- und Investitionsplanung unter Unsicherheit," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 15.
    4. Libbin, James D. & Johnson, Donald A. & Boehlje, Michael D. & Trede, Larry D., 1977. "A Risk-Return Analysis For The Midwest Farmer-Feeder," ISU General Staff Papers 197712010800001065, Iowa State University, Department of Economics.
    5. Webb, Patrick, 1989. "Intrahousehold decisionmaking and resource control: The effects of rice commercialization in West Africa," IFPRI working papers 3, International Food Policy Research Institute (IFPRI).
    6. Powell, Roy A. & Hardaker, J. Brian, 1969. "Recent Developments in Farm Planning: Sub-Optimal Programming Methods for Practical Farm Planning," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 37(02), June.
    7. King, Robert P., 1979. "Operational Techniques for Applied Decision Analysis Under Uncertainty," AAEA Fellows - Dissertations and Theses, Agricultural and Applied Economics Association, number 181951.
    8. Libbin, James D., 1982. "Projections of US farm numbers by Markov processes," ISU General Staff Papers 198201010800008508, Iowa State University, Department of Economics.
    9. Jock R. Anderson, 1975. "Programming For Efficient Planning Against Non‐Normal Risk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 94-107, August.
    10. Walker, Odell L. & Hardin, Mike L. & Mapp, Harry P., Jr. & Roush, Clint E., 1979. "Farm Growth And Estate Transfer In An Uncertain Environment," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 11(01), July.
    11. Parton, Kevin A. & Cumming, Robert J., 1990. "An Application of Target-MOTAD Programming to the Analysis of Downside Business and Financial Risk on Farms," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), April.
    12. Apland, Jeffrey & Hauer, Grant, 1993. "Discrete Stochastic Programming: Concepts, Examples And A Review Of Empirical Applications," Staff Papers 13793, University of Minnesota, Department of Applied Economics.
    13. Rao, N. Chandrasekhara, 2015. "Disadvantaged Regions and Social Groups: Is There a Way Out?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3).
    14. Runge, C. Ford, 2006. "Agricultural Economics: A Brief Intellectual History," Staff Papers 13649, University of Minnesota, Department of Applied Economics.
    15. Emana, Bezabih & Storck, Harmen, 1992. "Improvement strategies for farming systems in the Eastern Highlands of Ethiopia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 8(1), December.
    16. Wicks, John A. & Guise, John W.B., 1978. "An Alternative Solution To Linear Programming Problems With Stochastic Input-Output Coefficients," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(01), April.
    17. repec:ags:ucdegw:232858 is not listed on IDEAS
    18. Letson, David & Setia, Parveen P., 1994. "On-Farm Costos of Reducing environmental degradation under risk," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 9(2), pages 163-187.
    19. Ströbel, H., 1978. "Wirkungsweise von „Supervised Credit“ in kenianischen Kleinbetrieben," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 15.
    20. Wang, Mei & Fischbeck, Paul, 2004. "Evaluating lotteries, risks, and risk mitigation programs : a comparison of China and the United States," Papers 04-13, Sonderforschungsbreich 504.
    21. Adelman, Irma & Hihn, J. Michael & Head, Thomas, 1981. "An Approach to Policy Evaluation in the Egyptian Agricultural Sector: Simulation of Egyptian Village Economy," Working Papers 232858, University of California, Davis, Agricultural Development Systems: Egypt Project.
    22. Hanf, E. & Weindlmaier, H., 1978. "Options Research als Hilfsmittel für die finanzwirtschaftliche Planung der Unternehmensentwicklung," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 15.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:49:y:1967:i:4:p:869-880.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.