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Application of mean-Gini stochastic efficiency analysis

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  • McDonald, Jeffrey D.
  • Moffitt, L. Joe
  • Willis, Cleve E.

Abstract

This article adds to the information base concerning the applicability of mean- Gini stochastic efficiency analysis in agriculture. The mean-Gini efficient set of decisions is characterized rigorously in terms of its corresponding absolute risk aversion. In an empirical analysis, the mean-Gini efficient set of decisions is derived for four studies from the literature and compared to the second degree stochastic dominance efficient set. An alternative quantitative measure of risk aversion is used to gain insight in a visceral sense to the risk preferences associated with mean-Gini efficient decisions.

Suggested Citation

  • McDonald, Jeffrey D. & Moffitt, L. Joe & Willis, Cleve E., 1997. "Application of mean-Gini stochastic efficiency analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), pages 1-18.
    • Handle: RePEc:ags:aareaj:118007
    DOI: 10.22004/ag.econ.118007
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    Cited by:

    1. Schumann, Keith D., 2011. "Semi-nonparametric test of second degree stochastic dominance with respect to a function," Journal of Econometrics, Elsevier, vol. 162(1), pages 71-78, May.

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