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Efficiency Criteria And Risk Aversion: An Empirical Evaluation

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  • Wetzstein, Michael E.
  • Szmedra, Philip I.
  • McClendon, Ronald W.
  • Edwards, David M.

Abstract

A conceptual link among mean-variance (EV), stochastic dominance (SD), and mean-risk (ET), and Gini mean difference (EG) is established for determining risk efficient decision sets. The theoretical relations among the various efficiency criteria are then empirically demonstrated with a soybean and wheat double-crop simulation model. Empirical results associated with extended Gini mean difference (EEG) and extended mean-absolute Gini (EET) for risk analysis are encouraging.

Suggested Citation

  • Wetzstein, Michael E. & Szmedra, Philip I. & McClendon, Ronald W. & Edwards, David M., 1988. "Efficiency Criteria And Risk Aversion: An Empirical Evaluation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(1), pages 1-8, July.
    • Handle: RePEc:ags:sojoae:29716
    DOI: 10.22004/ag.econ.29716
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    2. Misra, Sukant K. & Spurlock, Stanley R., 1991. "Incorporating The Impacts Of Uncertain Fieldwork Time On Whole-Farm Risk-Return Levels: A Target Motad Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-10, December.

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    Risk and Uncertainty;

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