An Operational Approach for Evaluating Investment Risk: An Application to the No-Till Transition

Mykel Taylor ()
Additional contact information
Mykel Taylor: School of Economic Sciences, Washington State University

No 2010-17, Working Papers from School of Economic Sciences, Washington State University

Abstract: An Operational Approach for Evaluating Investment Risk: An Application to the No-Till Transition Abstract: Roy’s safety-first rule is used to provide measures popular with farmers of short and long term business risk associated with various no-till transition strategies over an investment horizon. The short run rule provided more sensitivity to inter-year financial risk than other commonly used criteria. Results revealed that speed of adoption influenced the probability of successful transition more than did the sequence of drill acquisition methods. Higher equity and larger farms had a greater chance of transition success. Slow acreage expansion with a custom or rental drill reduces risk until a no-till yield penalty is eliminated.

Keywords: food safety; discrete choice; information; consumer demand (search for similar items in EconPapers)
JEL-codes: D12 D83 Q18 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-11
New Economics Papers: this item is included in nep-agr
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://faculty.ses.wsu.edu/WorkingPapers/MTaylor/WP2010-17.pdf First version, 2005 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://faculty.ses.wsu.edu/WorkingPapers/MTaylor/WP2010-17.pdf [307 Temporary Redirect]--> https://ses.wsu.edu/faculty/)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsu:wpaper:mtaylor-2

Access Statistics for this paper

More papers in Working Papers from School of Economic Sciences, Washington State University Contact information at EDIRC.
Bibliographic data for series maintained by Danielle Engelhardt ().