@article{Komarek:100574,
      recid = {100574},
      author = {Komarek, Adam M. and MacAulay, T. Gordon},
      title = {Using alterative whole-farm modelling approaches to assess  farm enterprise selection, risk and welfare},
      address = {2011},
      number = {422-2016-26893},
      pages = {34},
      year = {2011},
      abstract = {Using an expected mean-variance model the changes in farm  enterprise levels and indirect utility were examined under  conditions of risk aversion, budget constraints and gross  margin variance. An extension of the comparative statics of  the expected mean-variance model was adopted by introducing  a budget constraint into the constrained optimisation  problem. A 10-year expected mean-variance whole-farm model  was solved for a farm in the wheat-sheep zone of Australia  to provide an empirical example. Results were obtained  using no planning horizon (the static model) and then with  a five-year rolling planning horizon (the dynamic model).  In addition, enterprise levels were constrained to match  levels observed on the farm so as to compare incomes  between the constrained and unconstrained models. For a  cash constrained, risk averse, farmer it was found that  they are likely to have larger expenditures than less risk  averse operators in order to obtain the same indirect  utility. Enterprise levels differed between the dynamic and  static models, and a dynamic model was used to help explain  inter-temporal decision-making. Risk aversion reduced the  set of possible welfare improving production activities  available to a farmer.},
      url = {http://ageconsearch.umn.edu/record/100574},
      doi = {https://doi.org/10.22004/ag.econ.100574},
}