Alternative risk supply response models for corn and soybeans

This paper reports on an analysis of the effects of including specified risk variables into alternative supply models. Two supply models, the Nerlovian and Ryan-Goodwin, are used to test the efficiency of the risk variables. Statistical properties and elasticities elicited from each model formulation are examined. Statistical results are mixed for the risk variables, with supply elasticities displaying high level of sensitivity ~Q the model formulation used.