IDEAS home Printed from https://ideas.repec.org/p/ags/waealo/36163.html
   My bibliography  Save this paper

Shadow Price Implications Of Several Stochastic Dominance Criteria

Author

Listed:
  • McCamley, Francis P.
  • Rudel, Richard K.

Abstract

Stochastic dominance criteria can be, but seldom are explicitly, applied to problems having continuous variables. A previously developed model is modified to facilitate exploration of sets of shadow price vectors for decreasing (non-increasing) absolute risk aversion stochastic dominance (DSD), a combination, TGSD, of third degree stochastic dominance (TSD) and generalized stochastic dominance (GSD) and a combination, DGSD, of DSD and GSD. The model is illustrated by applying it to two risk efficient (primal) solutions of a problem by Anderson, Dillon and Hardaker. For each of the two primal solutions and, where relevant, three risk aversion coefficient intervals, selected aspects of the sets of shadow price vectors consistent with TSD, DSD, TGSD and DGSD are compared with each other and with sets of shadow price vectors consistent with GSD and second degree stochastic dominance (SSD).

Suggested Citation

  • McCamley, Francis P. & Rudel, Richard K., 2001. "Shadow Price Implications Of Several Stochastic Dominance Criteria," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36163, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waealo:36163
    DOI: 10.22004/ag.econ.36163
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/36163/files/sp01mc01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.36163?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
    ---><---

    References listed on IDEAS

    as
    1. McCamley, Francis P. & Rudel, Richard K., 2000. "Shadow Price Implications Of Second Degree Stochastic Dominance Efficiency," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36370, Western Agricultural Economics Association.
    2. McCamley, Francis & Kliebenstein, James B., 1986. "Necessary Conditions For Dsd Efficiency Of Mixtures Of Risky Alternatives," 1986 Annual Meeting, July 27-30, Reno, Nevada 278149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. McCamley, F. P. & Kliebenstein, James, 1986. "Necessary Conditions for Generalized Stochastic Dominance Efficiency of Mixtures of Risky Alternatives," Staff General Research Papers Archive 10627, Iowa State University, Department of Economics.
    4. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    5. Matthew Rabin, 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Econometrica, Econometric Society, vol. 68(5), pages 1281-1292, September.
    6. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, November.
    7. Dybvig, Philip H & Ross, Stephen A, 1982. "Portfolio Efficient Sets," Econometrica, Econometric Society, vol. 50(6), pages 1525-1546, November.
    8. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    Full references (including those not matched with items on IDEAS)

    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. Schumann, Keith D. & Richardson, James W. & Lien, Gudbrand D. & Hardaker, J. Brian, 2004. "Stochastic Efficiency Analysis Using Multiple Utility Functions," 2004 Annual meeting, August 1-4, Denver, CO 19957, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. McCamley, Francis, 1988. "Approximating A Gsd-Efficient Set Of Mixtures Of Risky Alternatives For Risk Averse Decision Makers," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270301, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Cochran, Mark J., 1986. "Stochastic Dominance: The State Of The Art In Agricultural Economics," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271995, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    4. Anderson, Kim B. & Mapp, Harry P., Jr., 1996. "Risk Management Programs In Extension," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    5. Coffey, Brian K. & Skees, Jerry R. & Dillon, Carl R. & Anderson, John D., 2001. "Potential Effects Of Subsidized Livestock Insurance On Livestock Production," 2001 Annual meeting, August 5-8, Chicago, IL 20606, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Scott Johnson, C. & Foster, Kenneth A., 1994. "Risk Preferences and Contracting In the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 393-405, December.
    7. Massey, Raymond E. & Williams, Joseph E., 1991. "Swine Breeding Systems: A Stochastic Evaluation With Implications For Emerging Technology," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-9, July.
    8. Rister, M. Edward & Skees, Jerry R. & Black, J. Roy, 1984. "Evaluating Use Of Outlook Information In Grain Sorghum Storage Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-8, July.
    9. Hardaker, J. Brian & Lien, Gudbrand D., 2003. "Stochastic Efficiency Analysis With Risk Aversion Bounds: A Simplified Approach," Working Papers 12954, University of New England, School of Economics.
    10. McDonald, Jeffrey D. & Moffitt, L. Joe & Willis, Cleve E., 1997. "Application of mean-Gini stochastic efficiency analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), pages 1-18.
    11. Halter, A.N. & Mason, Robert, 1978. "Utility Measurement For Those Who Need To Know," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(2), pages 1-12, December.
    12. Eidman, V., 1989. "Quantifying and managing risk in agriculture," 1989 Annual Conference, September 25-27, Bloemfontein, South Africa 314723, Agricultural Economics Association of South Africa (AEASA).
    13. Wilson, Paul N. & Hwang, Henry H., 1982. "User'S Guide To Ordinary And Generalized Stochastic Dominance Computer Programs," Staff Papers 13277, University of Minnesota, Department of Applied Economics.
    14. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    15. Jourdain, Damien & Scopel, Eric & Affholder, Francois, 2001. "The Impact Of Conservation Tillage On The Productivity And Stability Of Maize Cropping Systems: A Case Study In Western Mexico," Economics Working Papers 46549, CIMMYT: International Maize and Wheat Improvement Center.
    16. Peterson, Jeffrey M. & Boisvert, Richard N., 2001. "Designing Nonpoint Source Pollution Policies With Limited Information About Both Risk Attitudes And Production Technology," 2001 Annual meeting, August 5-8, Chicago, IL 20720, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Jeffrey, Scott R., 1987. "The Application Of Stochastic Dominance Techniques To Multi-Period Problems: Issues And Implications," Staff Papers 13547, University of Minnesota, Department of Applied Economics.
    18. Serrao, Amilcar & Coelho, Luis, 2004. "Cumulative Prospect Theory: A Study Of The Farmers' Decision Behavior In The Alentejo Dryland Region Of Portugal," 2004 Annual meeting, August 1-4, Denver, CO 20245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. David J. Pannell, 1991. "Pests and pesticides, risk and risk aversion," Agricultural Economics, International Association of Agricultural Economists, vol. 5(4), pages 361-383, August.
    20. Gomez-Limon, Jose Antonio & Riesgo, Laura & Arriaza Balmón, Manuel, 2003. "Multi-Criteria Analysis Of Factors Use Level: The Case Of Water For Irrigation," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25836, International Association of Agricultural Economists.

    More about this item

    Keywords

    Demand and Price Analysis;

    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:waealo:36163. 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/waeaaea.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.