ECONOMETRIC TESTS OF FIRM DECISION MAKING UNDER UNCERTAINTY: OPTIMAL OUTPUT AND HEDGING DECISIONS

Timothy Park and Frances Antonovitz

No 271264, 1991 Annual Meeting, August 4-7, Manhattan, Kansas from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The competitive firm under price uncertainty which hedges and faces basic risk is examined. Assuming constant absolute risk aversion, reciprocity conditions linking optimal output, hedging, and input decisions and leading to testable econometric restrictions are derived. The theoretical model is empirically tested with data from a large California feedlot.

Keywords: Agricultural and Food Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 1991-08-04
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea91:271264

DOI: 10.22004/ag.econ.271264

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