COTTON PRODUCTION UNDER RISK: AN ANALYSIS OF INPUT EFFECTS ON YIELD VARIABILITY AND FACTOR DEMAND

The risk flexible production model developed by Just and Pope is estimated for the case of cotton in California’s San Joaquin Valley and the implications of the model for factor demand are examined. Results indicate risk-reducing roles for farm machinery, labor, and fertilizers in contrast to restrictions imposed by traditional stochastic production specifications. Qualitative assessment of estimated risk effects on factor employment under risk aversion are evaluated by comparison to the risk-neutral solution.


Issue Date:
1981-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32580
Published in:
Western Journal of Agricultural Economics, Volume 06, Number 2
Page range:
155-164
Total Pages:
10




 Record created 2017-04-01, last modified 2017-04-27

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