SUPPLY ANALYSIS OF JUTE WITH CONSIDERATION OF RISK
2017
Ahammed, Chowdhury Saleh
Jute production has always been a risky venture in Bangladesh. A general methodology recently developed is used to estimate supply elasticities as well as to calculate impact of risk aversion on acreage planted. The traditional adaptive expectations model of Nerlove is extended for the purpose by way of adding the second moment of prices. Results testify both the acreage responsiveness and risk-aversion attitude of jute farmers. Furthermore, past memories of farmers are found to have significant influence on current planting decisions.
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