IDEAS home Printed from https://ideas.repec.org/p/ags/aaea99/21713.html
   My bibliography  Save this paper

Towards Measuring Producer Welfare Under Output Price Uncertainty And Risk Non-Neutrality

Author

Listed:
  • Bullock, David S.
  • Shin, Kie-Yup
  • Garcia, Philip

Abstract

We combine theory with numerical integration methods to show that for any form of uncompensated supply, compensating variation of a change in higher moments of an output price distribution can be numerically derived.

Suggested Citation

  • Bullock, David S. & Shin, Kie-Yup & Garcia, Philip, 1999. "Towards Measuring Producer Welfare Under Output Price Uncertainty And Risk Non-Neutrality," 1999 Annual meeting, August 8-11, Nashville, TN 21713, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21713
    DOI: 10.22004/ag.econ.21713
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/21713/files/sp99bu02.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.21713?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chavas, Jean-Paul & Pope, Rulon, 1985. "Price uncertainty and competitive firm behavior: Testable hypotheses from expected utility maximization," Journal of Economics and Business, Elsevier, vol. 37(3), pages 223-235, August.
    2. Batra, Raveendra N & Ullah, Aman, 1974. "Competitive Firm and the Theory of Input Demand under Price Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 537-548, May/June.
    3. T. D. Wallace, 1962. "Measures of Social Costs of Agricultural Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(2), pages 580-594.
    4. Dixit, Avinash K., 1990. "Optimization in Economic Theory," OUP Catalogue, Oxford University Press, edition 2, number 9780198772101.
    5. Rulon D. Pope & Jean-Paul Chavas, 1985. "Producer Surplus and Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 853-869.
    6. Douglas M. Larson, 1988. "Exact Welfare Measurement for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 597-603.
    7. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    8. Rulon Pope & Jean-Paul Chavas & Richard E. Just, 1983. "Economic Welfare Evaluations for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 98-107.
    9. Vartia, Yrjo O, 1983. "Efficient Methods of Measuring Welfare Change and Compensated Income in Terms of Ordinary Demand Functions," Econometrica, Econometric Society, vol. 51(1), pages 79-98, January.
    10. Hausman, Jerry A, 1981. "Exact Consumer's Surplus and Deadweight Loss," American Economic Review, American Economic Association, vol. 71(4), pages 662-676, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David S. Bullock & Philip Garcia & Kie‐Yup Shin, 2005. "Measuring producer welfare under output price uncertainty and risk non‐neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21, March.
    2. Larson, Douglas M., 1987. "Exact Welfare Measurement for Producers Under Uncertainty," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270112, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Unknown, 1990. "Land Markets And Farm Incomes In Minnesota," Staff Papers 14102, University of Minnesota, Department of Applied Economics.
    4. Tsur, Yacov & Zilberman, David, 1989. "Certainty Equivalent Prices And Producer Welfare Under Output Price Uncertainty," Staff Papers 13562, University of Minnesota, Department of Applied Economics.
    5. Elie Appelbaum, 1996. "An Application of Duality under Uncertainty, Elie Appelbaum," Working Papers 1996_8, York University, Department of Economics.
    6. Hassan, Rashid M. & Hallam, Arne & D'Silva, B., 1988. "Stochastic Technology in a Programming Framework: A Generalized E. V. Model," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270212, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
    8. Yacov Tsur, 1993. "A Simple Procedure to Evaluate Ex Ante Producer Welfare under Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 44-51.
    9. Opaluch, James J., 1984. "Valuing Natural Resource And Environmental Amenities: Can Economic Valuation Techniques Be Made Defensible: Discussion," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(2), pages 1-4, October.
    10. Tabares Elizabeth & Ramón Rosales, 2005. "Políticas de control de oferta de coca: la zanahoria" y "el garrote""," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, May.
    11. Luh, Yir-Hueih & Stefanou, Spiro E., 1989. "Dairy Supply And Factor Demand Response To Output Price Risk: An Econometric Assessment," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-6, October.
    12. Park, Timothy A. & Antonovitz, Frances, 1991. "Econometric Tests Of Firm Decision Making Under Uncertainty: Optimal Output And Hedging Decisions," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271264, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Gan, Li & Ju, Gaosheng & Zhu, Xi, 2015. "Nonparametric estimation of structural labor supply and exact welfare change under nonconvex piecewise-linear budget sets," Journal of Econometrics, Elsevier, vol. 188(2), pages 526-544.
    14. Cherchye, L. & Post, G.T., 2001. "Methodological Advances in Dea," ERIM Report Series Research in Management ERS-2001-53-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Thomas Eichner & Rüdiger Pethig, 2015. "Efficient Management of Insecure Fossil Fuel Imports through Taxing Domestic Green Energy?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(5), pages 724-751, October.
    16. Ana Paula Martins, 2008. "Uninsurable Risks: Uncertainty in Production, the Value of Information and Price Dispersion," Economics Bulletin, AccessEcon, vol. 28(8), pages 1.
    17. Ardeshir J. Dalal & Sudhakar S. Raju, 2003. "Domestic and Foreign Sales When Prices in Both Markets are Uncertain," Bulletin of Economic Research, Wiley Blackwell, vol. 55(2), pages 125-148, April.
    18. Zein Kallas & Teresa Serra & Jos頠 M. Gil, 2012. "Effects of policy instruments on farm investments and production decisions in the Spanish COP sector," Applied Economics, Taylor & Francis Journals, vol. 44(30), pages 3877-3886, October.
    19. Richard Watt, 2020. "An Overlooked Result on the Competitive Firm under Output Price Risk: Are Factor Demand Curves Downward Sloping?," Working Papers in Economics 20/11, University of Canterbury, Department of Economics and Finance.
    20. Auerbach, Alan J. & Hines, James Jr., 2002. "Taxation and economic efficiency," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 21, pages 1347-1421, Elsevier.

    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:ags:aaea99:21713. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.