OPTIMAL GRAZING PRESSURE UNDER OUTPUT PRICE AND PRODUCTION UNCERTAINTY WITH ALTERNATIVE FUNCTIONAL FORMS

This study uses a Cox parametric bootstrap test to select between two specifications of the von Liebig hypothesis, a switching regression model and a non-linear mixed stochastic plateau function. The selected production function was used to determine optimal stocking density for dual-purpose winter wheat, under production and output price uncertainty. The switching regression approach was rejected in favor of the non-linear mixed stochastic plateau function. The relatively small difference in optimal stocking density between risk aversion and risk neutrality suggests that risk-aversion is much less important in explaining producer response to uncertainty than is nonlinearity in the production function.


Subject(s):
Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22020
Total Pages:
23
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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