AN EVALUATION OF EXPECTED VALUE AND EXPECTED VALUE-VARIANCE CRITERIA IN ACHIEVING RISK EFFICIENCY IN CROP SELECTION

This article evaluates the performance of expected value and expected value-variance criteria in achieving risk efficiency in crop selection. Results indicate that the expected returns criterion achieves risk efficiency in many situations because of constraints. However, in the absence of many constraints the expected returns criterion performs poorly except when highly mean-dominant activities are present. The expected value-variance criterion achieves a high degree of risk efficiency for all situations examined. This result implies that criteria more complex than expected value-variance are not necessary for crop selection analysis, given empirical returns distributions.


Issue Date:
1987-10
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/28985
PURL Identifier:
http://purl.umn.edu/28985
Published in:
Northeastern Journal of Agricultural and Resource Economics, Volume 16, Number 2
Page range:
93-101
Total Pages:
9




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

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