Production Risk and Optimal Input Decisions
1992
Ramaswami, Bharat
The paper examines the impact of production risk on a producer's optimal input decisions. Whether producers use more or fewer inputs in a yield‐risky environment depends on the sign of the marginal risk premium, which is determined by risk preferences and technology. I present the weakest condition on technology that is sufficient to sign the marginal risk premium for all risk‐averse preferences. If this condition fails to hold, the marginal risk premium is not of the same sign for all risk averters. Results are used to explore the properties of an estimated technology.
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书目信息
American journal of agricultural economics
卷
74
期
4
页码
860
- 869
ISSN
0002-9092
出版者
Oxford University Press
语言
英语
注释
Journal article
类型
Journal Article; Text
2024-02-28
MODS