IDEAS home Printed from https://ideas.repec.org/p/ags/umaesp/13624.html
   My bibliography  Save this paper

A Simple Procedure To Evaluate Ex-Ante Producer Welfare Under Price Uncertainty

Author

Listed:
  • Tsur, Yacov

Abstract

We propose a simple and tractable procedure for evaluating producer welfare under price uncertainty. These properties are achieved at the cost of assuming constant absolute risk aversion, where risk attitude depends on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties; the validity of the constant absolute risk aversion case as an approximation is discussed.

Suggested Citation

  • Tsur, Yacov, 1991. "A Simple Procedure To Evaluate Ex-Ante Producer Welfare Under Price Uncertainty," Staff Papers 13624, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:13624
    DOI: 10.22004/ag.econ.13624
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/13624/files/p91-28.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.13624?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
    2. Rulon D. Pope & Jean-Paul Chavas, 1985. "Producer Surplus and Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 853-869.
    3. Douglas M. Larson, 1988. "Exact Welfare Measurement for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 597-603.
    4. Rulon Pope & Jean-Paul Chavas & Richard E. Just, 1983. "Economic Welfare Evaluations for Producers under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 98-107.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bullock, David S. & Garcia, Philip & Shin, Kie-Yup, 2005. "Measuring producer welfare under output price uncertainty and risk non-neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21.

    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. Bullock, David S. & Garcia, Philip & Shin, Kie-Yup, 2005. "Measuring producer welfare under output price uncertainty and risk non-neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21.
    2. Unknown, 1990. "Land Markets And Farm Incomes In Minnesota," Staff Papers 14102, University of Minnesota, Department of Applied Economics.
    3. Bullock, David S. & Shin, Kie-Yup & Garcia, Philip, 1999. "Towards Measuring Producer Welfare Under Output Price Uncertainty And Risk Non-Neutrality," 1999 Annual meeting, August 8-11, Nashville, TN 21713, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Tsur, Yacov & Zilberman, David, 1989. "Certainty Equivalent Prices And Producer Welfare Under Output Price Uncertainty," Staff Papers 13562, University of Minnesota, Department of Applied Economics.
    5. Sebastian Ebert & Daniel Wiesen, 2014. "Joint measurement of risk aversion, prudence, and temperance," Journal of Risk and Uncertainty, Springer, vol. 48(3), pages 231-252, June.
    6. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
    7. Arnide, Carlos A. & Grigsby, Sandin, 1991. "CALCULATlNG PROFIT NEUTRAL LAND AND PRICE POLICIES," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271070, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Chalfant, James A. & Finkelshtain, Israel & Gray, Richard S., 1989. "The Competitive Firm'S Willingness To Pay For Information," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270477, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Nocetti, Diego C., 2013. "The LeChatelier principle for changes in risk," Journal of Mathematical Economics, Elsevier, vol. 49(6), pages 460-466.
    10. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    11. Arthur Charpentier & Benoît Le Maux, 2010. "Natural Catastrophe Insurance: When Should the Government Intervene?," Working Papers hal-00536925, HAL.
    12. Thomas Eichner & Andreas Wagener, 2002. "Increases in Risk and the Welfare State," CESifo Working Paper Series 685, CESifo.
    13. Kwame Addae‐Dapaah & Wilfred Tan Yong Hwee, 2009. "The unsung impact of currency risk on the performance of international real property investment," Review of Financial Economics, John Wiley & Sons, vol. 18(1), pages 56-65, January.
    14. Castro, Luciano de & Galvao, Antonio F. & Kim, Jeong Yeol & Montes-Rojas, Gabriel & Olmo, Jose, 2022. "Experiments on portfolio selection: A comparison between quantile preferences and expected utility decision models," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    15. Neus, Werner, 2014. "Eigenkapitalnormen, Boni und Risikoanreize in Banken," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(2), pages 92-107.
    16. Caporin, Massimiliano & Costola, Michele & Jannin, Gregory & Maillet, Bertrand, 2018. "“On the (Ab)use of Omega?”," Journal of Empirical Finance, Elsevier, vol. 46(C), pages 11-33.
    17. Yaron Leitner, 2004. "Financial networks: contagion, commitment, and private sector bailouts," Working Papers 02-9, Federal Reserve Bank of Philadelphia.
    18. Jie Ning & Matthew J. Sobel, 2018. "Production and Capacity Management with Internal Financing," Manufacturing & Service Operations Management, INFORMS, vol. 20(1), pages 147-160, February.
    19. Anissa Chaibi & Maria-Lenuta Ciupac-Ulici & Mircea-Cristian Gherman, 2014. "Do Recent Stochastic Tools Help to Better Understand Investors Preference and Asset Allocation?," Working Papers 2014-130, Department of Research, Ipag Business School.
    20. Franziska Tausch & Jan Potters & Arno Riedl, 2014. "An experimental investigation of risk sharing and adverse selection," Journal of Risk and Uncertainty, Springer, vol. 48(2), pages 167-186, April.

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    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:ags:umaesp:13624. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daumnus.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.