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Abstract
Procedures to measure the producer welfare effects of changes in an output price distribution
under uncertainty are reviewed. Theory and numerical integration methods are
combined to show how for any form of Marshallian risk-responsive supply, compensating
variation of a change in higher moments of an output price distribution can be
derived numerically. The numerical procedure enables measurement of producer welfare
effects in the many circumstances in which risk and uncertainty are important elements.
The practical ease and potential usefulness of the procedure is illustrated by measuring
the producer welfare effects of USA rice policy.