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Abstract
Using a linear-programming model of farming systems in northern Malawi, the conditions under which peasant farmhousehold
models may need to allow for embedded risk are investigated. Tactical, sequential responses to uncertainty are
found to be more important to labour-scarce households with limited access to capital and to credit markets. Compared with
semi-sequential programming, discrete stochastic programming (DSP) provided more efficient solutions for problems
involving embedded risk. There may be intuitive advantages in presenting results from DSP models in terms of a semisequential
strategy. © 1999 Elsevier Science B.V. All rights reserved.