Invariant Risk Preferences and Supply Response under Price Risk

Robert G. Chambers, Margarita Genius and Vangelis Tzouvelekas

American Journal of Agricultural Economics, 2021, vol. 103, issue 5, 1802-1819

Abstract: We develop a supply‐response model for producers with invariant preferences facing price risk and apply it empirically to sample data from Cretan olive‐oil producers. We estimate a Generalized Leontief cost function and use the price distribution historically faced by individual farmers to induce different representations of price risk that are consistent with the invariant preference structure. These different risk measures are combined with the estimated cost structure to provide distinct estimates of the risk‐efficient frontier faced by a representative producer with invariant risk preferences and to derive estimates of producer's generalized coefficients of risk aversion for different measures of price risk.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ajae.12228

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:wly:ajagec:v:103:y:2021:i:5:p:1802-1819

Access Statistics for this article

More articles in American Journal of Agricultural Economics from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().