A SIMPLE PROCEDURE TO EVALUATE EX-ANTE PRODUCER WELFARE UNDER PRICE UNCERTAINTY

We propose a simple and tractable procedure for evaluating producer welfare under price uncertainty. These properties are achieved at the cost of assuming constant absolute risk aversion, where risk attitude depends on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties; the validity of the constant absolute risk aversion case as an approximation is discussed.


Issue Date:
1991
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/13624
PURL Identifier:
http://purl.umn.edu/13624
Total Pages:
16
Series Statement:
Staff Paper P91-28




 Record created 2017-04-01, last modified 2018-01-22

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