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Cotton Production Under Risk: An Analysis Of Input Effects On Yield Variability And Factor Demand

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  • Farnsworth, Richard L.
  • Moffitt, L. Joe

Abstract

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.

Suggested Citation

  • Farnsworth, Richard L. & Moffitt, L. Joe, 1981. "Cotton Production Under Risk: An Analysis Of Input Effects On Yield Variability And Factor Demand," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32580
    DOI: 10.22004/ag.econ.32580
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    References listed on IDEAS

    as
    1. Just, Richard E. & Pope, Rulon D., 1978. "Stochastic specification of production functions and economic implications," Journal of Econometrics, Elsevier, vol. 7(1), pages 67-86, February.
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    Cited by:

    1. J. K. Horowitz & E. Lichtenberg, 1994. "Risk‐Reducing And Risk‐Increasing Effects Of Pesticides," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 82-89, January.
    2. Serra, Teresa & Zilberman, David & Goodwin, Barry K. & Featherstone, Allen M., 2005. "Effects of Decoupling on the Average and the Variability of Output," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24601, European Association of Agricultural Economists.
    3. Niklas Möhring & Martina Bozzola & Stefan Hirsch & Robert Finger, 2020. "Are pesticides risk decreasing? The relevance of pesticide indicator choice in empirical analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 429-444, May.
    4. Feinerman, Eli & Vaux, Henry J., Jr., 1984. "Uncertainty And The Management Of Salinity With Irrigation Water," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-12, December.
    5. Hurd, Brian H., 1994. "Yield Response And Production Risk: An Analysis Of Integrated Pest Management In Cotton," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-14, December.
    6. Scott, R. Douglass, III & Cochran, Mark J. & Nicholson, W.F., Jr., 1986. "Economic Analysis Of Cotton Integrated Pest Management Strategies: A Comment," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-3, July.
    7. Sarthak Gaurav & Srijit Mishra, 2012. "To Bt or not to Bt? Risk and uncertainty considerations in technology assessment," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    8. Onianwa, Odili & Alderfer, Richard & Levins, Richard A., 1992. "Taxation As A Means Of Reducing Nitrogen Fertilizer Use In Minnesota Corn Production," Staff Papers 13281, University of Minnesota, Department of Applied Economics.
    9. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.

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