Technological and financial approaches to risk management in agriculture: an integrate approach

Robert Chambers () and John Quiggin

Australian Journal of Agricultural and Resource Economics, 2004, vol. 48, issue 2, 25

Abstract: In the present paper, risk‐management problems where farmers manage risk both through production decisions and through the use of market‐based and informal risk‐management mechanisms are considered. It is shown that many of these problems share a common structure, and that a unified and informative treatment of a broad spectrum of risk‐management tools is possible within a cost‐minimisation framework, under minimal conditions on their objective functions. Fundamental results are derived that apply regardless of the producer's preference towards risks, using only the no‐arbitrage condition that agricultural producers never forego any opportunity to lower costs without lowering returns.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (17)

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Journal Article: Technological and financial approaches to risk management in agriculture: an integrated approach (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:117960

DOI: 10.22004/ag.econ.117960

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