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Participation in Farm Commodity Programs: A Stochastic Dominance Analysis

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  • Randall A. Kramer
  • Rulon D. Pope

Abstract

The net benefits of participation in farm commodity programs are analyzed with a normative risk model based on stochastic dominance theory. Utilizing entire probability distributions of participation and nonparticipation net returns, the impacts of alternative program features and farm size are investigated. Small changes in program parameters are found to affect participation decisions. It also is demonstrated that farm size can influence participation choices.

Suggested Citation

  • Randall A. Kramer & Rulon D. Pope, 1981. "Participation in Farm Commodity Programs: A Stochastic Dominance Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 119-128.
    • Handle: RePEc:oup:ajagec:v:63:y:1981:i:1:p:119-128.
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    File URL: http://hdl.handle.net/10.2307/1239817
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