The Use of Stochastic Dominance to Analyse Risk of Conservation and Conventional Tillage Systems

J. Hough and Groenewald. J.A.

No 346142, 8th Congress, New Zealand, 4-9 February 1991 from International Farm Management Association

Abstract: Seven different tillage systems(including conservation and conventional practices) were identified and analysed by determining yield and net margin effects. The conservation tillage systems performed on average 111% better than the conventional systems in respect of net margins per R100 of capital invested. The risks involved in the seven tillage systems as regards yield, net margins and net margins per R100 of capital invested were analysed and ranked using stochastic dominance (SD). First-order and second-order SD showed conservation systems to be less risky than conventional systems and produced sufficient dominance to exercise choices. Third-order SD did not provide any additional dominance results. Rank shifts between net margins and net margins per R100 of capital invested occurred.

Keywords: Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 15
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma91:346142

DOI: 10.22004/ag.econ.346142

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