HEDGING AND PRODUCTION DECISIONS UNDER A LINEAR MEAN-VARIANCE PREFERENCE FUNCTION

Jean-Paul Chavas () and Rulon D. Pope

Western Journal of Agricultural Economics, 1982, vol. 07, issue 01, 12

Abstract: A firm model of production and hedging decisions is developed using a mean-variance preference function. Comparative static analysis of the model generates a number of testable hypotheses. For example, the influence of price risk, production risk and hedging cost on the optimal level of production and hedging is analyzed in the framework.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 1982
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32422

DOI: 10.22004/ag.econ.32422

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