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On the Use of Alternative Objective Functions in Multiperiod Programming Models

Author

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  • Shrestha, Chandra M.
  • Debertin, David L.
  • Anschel, Kurt R.

Abstract

A particular objective function generally cannot represent the goals of all farmers. This paper examines interelationships among alternative objective functions frequently used in multiperiod programming models. It is found that the terminal~net~worth or salvage~value~including~net4 presentuvalue objective function yields substantially different and more growth~oriented results than does the salvage~value~excluding~net~present~value objective function.

Suggested Citation

  • Shrestha, Chandra M. & Debertin, David L. & Anschel, Kurt R., 1987. "On the Use of Alternative Objective Functions in Multiperiod Programming Models," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269983, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:269983
    DOI: 10.22004/ag.econ.269983
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    References listed on IDEAS

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    4. Martin, J. Rod & Plaxico, James S., 1967. "Polyperiod Analysis of Growth and Capital Accumulation of Farms in the Rolling Plains of Oklahoma and Texas," Technical Bulletins 171583, United States Department of Agriculture, Economic Research Service.
    5. James S. Plaxico & Darrel D. Kletke, 1979. "The Value of Unrealized Farm Land Capital Gains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 327-330.
    6. K. D. Cocks & H. O. Carter, 1968. "Micro Goal Functions and Economic Planning," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(2), pages 400-411.
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