"Don't Count Your Chickens...": Risk and Risk Shifting in the Broiler Industry

Charles R. Knoeber and Walter Thurman

American Journal of Agricultural Economics, 1995, vol. 77, issue 3, 486-496

Abstract: The contracts used to reward growers of broiler chickens in the United States base pay on a grower's performance relative to other growers. From a panel of data covering seventy-five growers over four years, we use simulation methods to measure the price and production risk shifted from growers to integrator companies by these contracts. We also decompose the risk in broiler production variability. We conclude that the bulk of the risk in our sample, which is primarily price risk, is shifted from growers through the use of production contracts.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
http://hdl.handle.net/10.2307/1243218 (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:3:p:486-496.

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 ().