Subjective versus Objective Yield Distributions as Measures of Production Risk

Joyotee Smith and Abraham M. Mandac

American Journal of Agricultural Economics, 1995, vol. 77, issue 1, 152-161

Abstract: Subjective probabilities of farmers with nonlinear utility are estimated from distributions elicited by applying a linear scoring rule with monetary payoffs. Estimated subjective distributions are compared to objective estimates of yield distributions in a risky rainfed rice-growing area in the Philippines. The results indicate that farmers are knowledgeable about mean nitrogen response, but seriously underestimate year-to-year variability in yield response to nitrogen. The implication is that accurately estimated objective distributions can be used to estimate upper limits of the effects of risk aversion on allocative decisions.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.2307/1243897 (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:77:y:1995:i:1:p:152-161.

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 ().