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An Application of Target-MOTAD Programming to the Analysis of Downside Business and Financial Risk on Farms

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  • Parton, Kevin A.
  • Cumming, Robert J.

Abstract

In this paper a description is provided of the development and use of a target-MOTAD model for use in consultative work with farmers who are under financial pressure. The analysis of downside risk and introduction of a trade-off between financial and business risks are key features of this model that make it especially applicable to such situations.

Suggested Citation

  • 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), pages 1-13, April.
    • Handle: RePEc:ags:remaae:12286
    DOI: 10.22004/ag.econ.12286
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    References listed on IDEAS

    as
    1. Fishburn, Peter C, 1977. "Mean-Risk Analysis with Risk Associated with Below-Target Returns," American Economic Review, American Economic Association, vol. 67(2), pages 116-126, March.
    2. 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.
    3. Tsiang, S C, 1972. "The Rationale of the Mean-Standard Deviation Analysis, Skewness Preference, and the Demand for Money," American Economic Review, American Economic Association, vol. 62(3), pages 354-371, June.
    4. Hooke, Gus, 1988. "Interest Rates, the Exchange Rate and Farmers," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(01), pages 1-6, April.
    5. Myles J. Watts & Larry J. Held & Glenn A. Helmers, 1984. "A Comparison of Target MOTAD to MOTAD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(1), pages 175-186, March.
    6. P. B. R. Hazell & P. L. Scandizzo, 1974. "Competitive Demand Structures under Risk in Agricultural Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 235-244.
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    Cited by:

    1. John W. Cary & Roger L. Wilkinson, 1997. "Perceived Profitability And Farmers‘ Conservation Behaviour," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 13-21, January.
    2. Eihab Fathelrahman & Mohamed Gheblawi & Safdar Muhammad & Emily Dunn & James C. Ascough & Timothy R. Green, 2017. "Optimum Returns from Greenhouse Vegetables under Water Quality and Risk Constraints in the United Arab Emirates," Sustainability, MDPI, vol. 9(5), pages 1-11, April.
    3. Kingwell, Ross, 1996. "Programming models of farm supply response: The impact of specification errors," Agricultural Systems, Elsevier, vol. 50(3), pages 307-324.
    4. Harris, Thomas R. & Seung, Chang K. & Narayanan, Rangesan, 2001. "Targeting Economic Diversification: An Application of Target MOTAD Procedures," The Review of Regional Studies, Southern Regional Science Association, vol. 31(2), pages 197-215, Fall.

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