SHADOW PRICE IMPLICATIONS OF SEVERAL STOCHASTIC DOMINANCE CRITERIA

Francis P. McCamley and Richard K. Rudel

No 36163, 2001 Annual Meeting, July 8-11, 2001, Logan, Utah from Western Agricultural Economics Association

Abstract: Stochastic dominance criteria can be, but seldom are explicitly, applied to problems having continuous variables. A previously developed model is modified to facilitate exploration of sets of shadow price vectors for decreasing (non-increasing) absolute risk aversion stochastic dominance (DSD), a combination, TGSD, of third degree stochastic dominance (TSD) and generalized stochastic dominance (GSD) and a combination, DGSD, of DSD and GSD. The model is illustrated by applying it to two risk efficient (primal) solutions of a problem by Anderson, Dillon and Hardaker. For each of the two primal solutions and, where relevant, three risk aversion coefficient intervals, selected aspects of the sets of shadow price vectors consistent with TSD, DSD, TGSD and DGSD are compared with each other and with sets of shadow price vectors consistent with GSD and second degree stochastic dominance (SSD).

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 14
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/36163/files/sp01mc01.pdf (application/pdf)

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:ags:waealo:36163

DOI: 10.22004/ag.econ.36163

Access Statistics for this paper

More papers in 2001 Annual Meeting, July 8-11, 2001, Logan, Utah from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().