IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v57y1975i3p439-449..html
   My bibliography  Save this article

Optimizing Seed Acreage: Decision Making with Production and Utilization Uncertainties

Author

Listed:
  • M. Dean Ethridge
  • Fred C. White
  • D. Kannan

Abstract

Under yield and utilization uncertainties, optimum planted acreage may be estimated using the concept of disequilibrium costs—those costs incurred when production is not matched with utilization. A model to minimize expected disequilibrium cost is formulated and applied to peanut seed acreage in Georgia. Since larger disequilibrium costs result from underproduction than from overproduction of peanut seed, optimum seed acreage increases substantially when allowances are made for existing yield and utilization uncertainties.

Suggested Citation

  • M. Dean Ethridge & Fred C. White & D. Kannan, 1975. "Optimizing Seed Acreage: Decision Making with Production and Utilization Uncertainties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 439-449.
    • Handle: RePEc:oup:ajagec:v:57:y:1975:i:3:p:439-449.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1238406
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fama, Eugene F, 1970. "Multiperiod Consumption-Investment Decisions," American Economic Review, American Economic Association, vol. 60(1), pages 163-174, March.
    2. Dreze, Jacques H, 1972. "Econometrics and Decision Theory," Econometrica, Econometric Society, vol. 40(1), pages 1-17, January.
    3. Zabel, Edward, 1973. "Consumer Choice, Portfolio Decisions, and Transaction Costs," Econometrica, Econometric Society, vol. 41(2), pages 321-335, March.
    4. Alain De Janvry, 1972. "Optimal Levels of Fertilization Under Risk: The Potential for Corn and Wheat Fertilization Under Alternative Price Policies in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 1-10.
    5. Hadar, Josef & Russell, William R., 1974. "Diversification of interdependent prospects," Journal of Economic Theory, Elsevier, vol. 7(3), pages 231-240, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George G. Kaufman, 1980. "Duration, Planning Period, And Tests Of The Capital Asset Pricing Model," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 3(1), pages 1-9, March.
    2. Young, Douglas & Lin, William & Pope, Rulon & Robison, Lindon & Selley, Roger, 1979. "Risk Preferences Of Agricultual Producers:Their Measurement And Use," Risk Management in Agriculture: Behavioral, Managerial, and Policy Issues, January 25-26, 1979, San Francisco, California 271459, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    3. Dokuchaev, Nikolai, 2010. "Optimality of myopic strategies for multi-stock discrete time market with management costs," European Journal of Operational Research, Elsevier, vol. 200(2), pages 551-556, January.
    4. Zhang, Xili & Zhang, Weiguo & Xiao, Weilin, 2013. "Multi-period portfolio optimization under possibility measures," Economic Modelling, Elsevier, vol. 35(C), pages 401-408.
    5. Athar Iqbal & Akhtiar Ali & Peter Xavier D’Abreo, 2017. "Fama And French Three Factor Model Application In The Pakistan Stock Exchange (Pse)," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 13-11.
    6. Liu, Yong-Jun & Zhang, Wei-Guo, 2015. "A multi-period fuzzy portfolio optimization model with minimum transaction lots," European Journal of Operational Research, Elsevier, vol. 242(3), pages 933-941.
    7. Mario Alejandro Acosta R., 2014. "Las acciones como activo de reserva para el Banco de la República," Documentos CEDE 11004, Universidad de los Andes, Facultad de Economía, CEDE.
    8. Chen, Jia & Li, Degui & Linton, Oliver & Lu, Zudi, 2016. "Semiparametric dynamic portfolio choice with multiple conditioning variables," Journal of Econometrics, Elsevier, vol. 194(2), pages 309-318.
    9. Mehmet Balcilar & Zeynel Abidin Ozdemir & Esin Cakan, 2015. "Structural Breaks, Long Memory, or Unit Roots in Stock Prices: Evidence from Emerging Markets," International Econometric Review (IER), Econometric Research Association, vol. 7(1), pages 13-33, April.
    10. Peter Simmons & Yuanyuan Xie, 2013. "Financial Markets Around the Great Recession: East Meets West," Discussion Papers 13/29, Department of Economics, University of York.
    11. Michael W. Brandt & Amit Goyal & Pedro Santa-Clara & Jonathan R. Stroud, 2005. "A Simulation Approach to Dynamic Portfolio Choice with an Application to Learning About Return Predictability," The Review of Financial Studies, Society for Financial Studies, vol. 18(3), pages 831-873.
    12. Al-Shboul, Mohammad & Alsharari, Nizar, 2019. "The dynamic behavior of evolving efficiency: Evidence from the UAE stock markets," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 119-135.
    13. Nitzan Weiss, 1984. "Reply to a Paradigmatic Comment: Capital Markets, Output, and the Demand for Inputs under Uncertainty," Eastern Economic Journal, Eastern Economic Association, vol. 10(1), pages 79-85, Jan-Mar.
    14. Benjamin M. Friedman, 1978. "Who Puts the Inflation Premium Into Nominal Interests Rates?," NBER Working Papers 0231, National Bureau of Economic Research, Inc.
    15. McSweeny, William T. & Shortle, James S., 1989. "Reducing Nutrient Application Rates For Water Quality Protection In Intensive Livestock Areas: Policy Implications Of Alternative Producer Behavior," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(1), pages 1-11, April.
    16. Girlich, Hans-Joachim, 2003. "Transaction costs in finance and inventory research," International Journal of Production Economics, Elsevier, vol. 81(1), pages 341-350, January.
    17. Emilio Fernandez-Corugedo, 2002. "Soft liquidity constraints and precautionary saving," Bank of England working papers 158, Bank of England.
    18. Benjamin M. Friedman, 1980. "The Effect of Shifting Wealth Ownership on the Term Structure of Interest Rates," NBER Working Papers 0239, National Bureau of Economic Research, Inc.
    19. Tembo, Gelson & Brorsen, B. Wade & Epplin, Francis M., 2003. "Linear Response Stochastic Plateau Functions," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35217, Southern Agricultural Economics Association.
    20. Francisco Campuzano-Bolarín & Fulgencio Marín-García & José Andrés Moreno-Nicolás & Marija Bogataj & David Bogataj, 2021. "Network Simulation Method for the evaluation of perturbed supply chains on a finite horizon," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(3), pages 823-839, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:57:y:1975:i:3:p:439-449.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.