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Southern Journal of Agricultural Economics >
Volume 22, Number 02, December 1990 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/30002
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| Title: | QUANTIFYING GAINS TO RISK DIVERSIFICATION USING CERTAINTY EQUIVALENCE IN A MEAN-VARIANCE MODEL: AN APPLICATION TO FLORIDA CITRUS |
| Authors: | Featherstone, Allen M.
Moss, Charles B. |
| Issue Date: | 1990-12 |
| Abstract: | The marginal benefit and cost of diversification for Florida orange producers is analyzed using certainty equivalents. Results indicate that for moderate and high levels of risk aversion, diversification into strawberry, grapefruit, or additional orange production is not optimal. However, moderately risk averse Florida orange producers can gain by diversifying into grapefruit production if the annual amortized fixed costs can be reduced by as little as 10 percent. |
| URI: | http://purl.umn.edu/30002 |
| Institution/Association: | Southern Journal of Agricultural Economics>Volume 22, Number 02, December 1990 |
| Total Pages: | 7 |
| Language: | English |
| From Page: | 191 |
| To Page: | 197 |
| Collections: | Volume 22, Number 02, December 1990
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