OPTIMAL GRAZING PRESSURE UNDER OUTPUT PRICE AND PRODUCTION UNCERTAINTY WITH ALTERNATIVE FUNCTIONAL FORMS

Simeon Kaitibie, William Nganje, B Brorsen and Francis Epplin ()

No 22020, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study uses a Cox parametric bootstrap test to select between two specifications of the von Liebig hypothesis, a switching regression model and a non-linear mixed stochastic plateau function. The selected production function was used to determine optimal stocking density for dual-purpose winter wheat, under production and output price uncertainty. The switching regression approach was rejected in favor of the non-linear mixed stochastic plateau function. The relatively small difference in optimal stocking density between risk aversion and risk neutrality suggests that risk-aversion is much less important in explaining producer response to uncertainty than is nonlinearity in the production function.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 23
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea03:22020

DOI: 10.22004/ag.econ.22020

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