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E,V Frontier Analysis Using Total And Random Variance As Measures Of Risk

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  • Bravo-Ureta, Boris E.
  • Helmers, Glenn A.

Abstract

Expected income-variance (E,V) frontiers in crop production are derived using total and random (variate difference) variance. The results show that the farm organization is influenced by the variance measure used. The authors argue that random variance is a better measure of risk; consequently random E,V frontiers provide better estimates of risk-income tradeoffs.

Suggested Citation

  • Bravo-Ureta, Boris E. & Helmers, Glenn A., 1980. "E,V Frontier Analysis Using Total And Random Variance As Measures Of Risk," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 279235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea80:279235
    DOI: 10.22004/ag.econ.279235
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    References listed on IDEAS

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    1. Young, Douglas L., 1979. "Risk Preferences Of Agricultural Producers: Their Use In Extension And Research," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278203, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lars Brink & Bruce McCarl, 1978. "The Tradeoff between Expected Return and Risk Among Cornbelt Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 259-263.
    3. Douglas L. Young, 1979. "Risk Preferences of Agricultural Producers: Their Use in Extension and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1063-1070.
    4. R. R. Officer & A. N. Halter, 1968. "Utility Analysis in a Practical Setting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(2), pages 257-277.
    5. 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.
    6. John T. Scott & Chester B. Baker, 1972. "A Practical Way to Select an Optimum Farm Plan Under Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(4_Part_1), pages 657-660.
    7. 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.
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    Keywords

    Risk and Uncertainty;

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