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Estimating Farm Level Multivariate Yield Distribution Using Nonparametric Methods

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  • Zheng, Qiujie
  • Wang, H. Holly
  • Shi, Qinghua

Abstract

Modeling crop yield distributions has been an important topic in agricultural production and risk analysis, and nonparametric methods have gained attention for their flexibility in describing the shapes of yield density functions. In this article, we apply a nonparametric method to model joint yield distributions based on farm-level data for multiple crops, and also provide a way of simulation for univariate and bivariate distributions. The results show that the nonparametric models, both univariate and bivariate, are estimated quite well compared to the original samples, and the simulated empirical distributions also preserve the attributes of the original samples at a reasonable level. This article provides a feasible way of using multivariate nonparametric methods in further risk and insurance analysis.

Suggested Citation

  • Zheng, Qiujie & Wang, H. Holly & Shi, Qinghua, 2008. "Estimating Farm Level Multivariate Yield Distribution Using Nonparametric Methods," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6509, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea08:6509
    DOI: 10.22004/ag.econ.6509
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    References listed on IDEAS

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    4. Joseph Atwood & Saleem Shaik & Myles Watts, 2003. "Are Crop Yields Normally Distributed? A Reexamination," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 888-901.
    5. C. Robert Taylor, 1990. "Two Practical Procedures for Estimating Multivariate Nonnormal Probability Density Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 210-217.
    6. Alan P. Ker & Keith Coble, 2003. "Modeling Conditional Yield Densities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 291-304.
    7. Octavio A. Ramírez, 1997. "Estimation and Use of a Multivariate Parametric Model for Simulating Heteroskedastic, Correlated, Nonnormal Random Variables: The Case of Corn Belt Corn, Soybean, and Wheat Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 191-205.
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    10. Bailey Norwood & Matthew C. Roberts & Jayson L. Lusk, 2004. "Ranking Crop Yield Models Using Out-of-Sample Likelihood Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1032-1043.
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    Keywords

    Farm Management; Risk and Uncertainty;

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