Equity Considerations for Wetland Retention Programs: Using a Stochastic Frontier Approach to Investigate Policy Alternatives

This analysis presents a stylized depiction of a government program such as the wetland reserve, where a social planner determines which types of wetlands are brought into production and which are left idle. If the planner is concerned with the dispersion or variance of benefits across producers as well as the mean, his decision problem is algebraically equivalent to a mean-variance portfolio model for a risk-averse individual. The model also identifies an efficient frontier of policies under various “inequality tolerance” levels. Based on available survey data, I apply this method to determine the effects of wetland dispersion on producers’ income.


Issue Date:
2002
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/132235
Published in:
Journal of Regional Analysis and Policy, Volume 32, Issue 2
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-26

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