Estimation Risk in Farm Planning Under Uncertainty

Robert Collender

American Journal of Agricultural Economics, 1989, vol. 71, issue 4, 996-1002

Abstract: This paper examines the impact of estimation risk on a decision maker's ability to distinguish between the mean-variance characteristics of different farm plans. The importance of making such distinctions should be clear; risk-averse decision makers will want to bear risk only if they can be reasonably confident of commensurate increases in expected return. When parameters are unknown, statistically testing for differences in their estimated values is appropriate. An illustration of such tests using data from Hazell suggests considerable resources must be devoted toward data generation if normative statements under uncertainty are to be reliable.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.2307/1242675 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:ajagec:v:71:y:1989:i:4:p:996-1002.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().