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Programming For Efficient Planning Against Non‐Normal Risk

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  • Jock R. Anderson

Abstract

A planning methodology is developed based on Monte Carlo sampling of plans and sorting out inefficient plans according to the rules of stochastic dominance. Illustrations and methodological comparison are made in a context of farm planning under risk, and an application in income stabilization research is indicated.
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  • Jock R. Anderson, 1975. "Programming For Efficient Planning Against Non‐Normal Risk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 94-107, August.
    • Handle: RePEc:bla:ajarec:v:19:y:1975:i:2:p:94-107
    DOI: j.1467-8489.1975.tb00149.x
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    1. S. R. Johnson, 1967. "A Re-examination of the Farm Diversification Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(3), pages 610-621.
    2. Richard H. Day, 1965. "Probability Distributions of Field Crop Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 713-741.
    3. Whitmore, G A, 1970. "Third-Degree Stochastic Dominance," American Economic Review, American Economic Association, vol. 60(3), pages 457-459, June.
    4. Wilfred Candler & Wayne Cartwright & J. B. Penn, 1973. "The Substitution of Analytic for Simulation Algorithms: A Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(2), pages 235-239.
    5. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    6. Chisholm, Anthony H., 1971. "A Comparison Of Income Averaging Procedures For Income Tax Purposes," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 15(1), pages 1-15, April.
    7. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 664-665.
    8. 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.
    9. Frankfurter, George M. & Phillips, Herbert E. & Seagle, John P., 1971. "Portfolio Selection: The Effects of Uncertain Means, Variances, and Covariances," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 6(5), pages 1251-1262, December.
    10. Anderson, Jock R., 1974. "Risk Efficiency in the Interpretation of Agricultural Production Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(03), pages 1-54, September.
    11. B. Curtis Eaves, 1971. "On Quadratic Programming," Management Science, INFORMS, vol. 17(11), pages 698-711, July.
    12. Carlsson, Marten & Hovmark, Bertil & Lindgren, Ingvar, 1969. "Recent Developments in Farm Planning: A Monte Carlo Method for the Study of Farm Planning Problems," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 37(02), pages 1-24, June.
    13. Anthony H. Chisholm, 1971. "A Comparison Of Income Averaging Procedures For Income Tax Purposes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 15(1), pages 36-50, April.
    14. Barry, Christopher B, 1974. "Portfolio Analysis under Uncertain Means, Variances, and Covariances," Journal of Finance, American Finance Association, vol. 29(2), pages 515-522, May.
    15. William Lin & G. W. Dean & C. V. Moore, 1974. "An Empirical Test of Utility vs. Profit Maximization in Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 497-508.
    16. Jock R. Anderson, 1974. "Sparse Data, Climatic Variability, and Yield Uncertainty in Response Analysis: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 647-647.
    17. Jock R. Anderson, 1973. "Sparse Data, Climatic Variability, and Yield Uncertainty in Response Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(1), pages 77-82.
    18. Joyce T. Chen & C. B. Baker, 1974. "Marginal Risk Constraint Linear Program for Activity Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 622-627.
    19. K. J. Thomson & P. B. R. Hazell, 1972. "Reliability of Using the Mean Absolute Deviation to Derive Efficient E,V Farm Plans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(3), pages 503-506.
    20. Wayne Thomas & Leroy Blakeslee & LeRoy Rogers & Norman Whittlesey, 1972. "Separable Programming for Considering Risk in Farm Planning," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 260-266.
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    Cited by:

    1. Unknown, 1988. "Australian Agricultural Economics Society Awards 1988; 33rd Annual Conference, Australian Agricultural Economics Society, Lincoln College, Canterbury, NZ, 6-9 February 1989," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(2), pages 1-5.
    2. Robison, Lindon J. & King, Robert P., 1978. "Specification of Micro Risk Models for Farm Management and Policy Research," Agricultural Economic Report Series 10260, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Buccola, Steven T. & Subaei, Abdelbagi, 1984. "Mean-Gini Analysis, Stochastic Efficiency And Weak Risk Aversion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 28(2-3), pages 1-10, August.
    4. King, Robert P. & Robison, Lindon J., 1980. "Implementing Stochastic Dominance With Respect To A Function," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271563, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    5. Burman, Leonard E., 1980. "A Review of Monte Carlo Applications in Agricultural Research," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278475, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Anderson, Jock R., 1989. "Reconsiderations On Risk Deductions In Public Project Appraisal," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(2), pages 1-5, August.
    7. Anderson, Jock R., 2003. "Risk in rural development: challenges for managers and policy makers," Agricultural Systems, Elsevier, vol. 75(2-3), pages 161-197.
    8. Battese, George E. & Francisco, Emilio M., 1977. "Distributions Of Indemnities For Crop-Insurance Plans: With Application To Grain Crops In New South Wales," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 1-13, August.
    9. J. Brian Hardaker & Louise H. Patten & David J. Pannell, 1988. "Utility‐Efficient Programming For Whole‐Farm Planning," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 32(2-3), pages 88-97, 08-12.
    10. Richardson, R.A. & Hardaker, J.B. & Anderson, Jock R., 1976. "Farm-level Decision Models for Developed Agriculture," 1976 Conference, July 26-August 4, 1976, Nairobi, Kenya 182312, International Association of Agricultural Economists.

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