Risk Preferences, Price Uncertainties and Production Risk: A Survey
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F23%3A97763" target="_blank" >RIV/60460709:41110/23:97763 - isvavai.cz</a>
Result on the web
<a href="https://www.cabidigitallibrary.org/doi/book/10.1079/9781800622289.0000" target="_blank" >https://www.cabidigitallibrary.org/doi/book/10.1079/9781800622289.0000</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1079/9781800622289.0002" target="_blank" >10.1079/9781800622289.0002</a>
Alternative languages
Result language
angličtina
Original language name
Risk Preferences, Price Uncertainties and Production Risk: A Survey
Original language description
This chapter deals with modeling of risk preferences when producers face uncertainties in output and input prices, in addition to production risk. All these uncertainty components are modeled assuming that the producers maximize expected utility of anticipated profit. Risk preference functions associated with these uncertainties are derived without assuming a specific form of the utility function. Moreover, no distributional assumptions are made on the distributions of the random variables representing price and production uncertainties. A multi-stage estimation procedure is discussed to estimate the parameters of the production function and risk preference functions associated with output price uncertainty, input price uncertainty and production risk. Production risk is specified in such a way that one can identify inputs with increasing, decreasing and constant production risks. Similarly, risk aversion behavior is specified in such a way that one can test for different types of risk aversion behavior. Different modeling strategies that have been used in the past are also discussed. We also consider the certainty equivalent approach.
Czech name
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Czech description
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Classification
Type
C - Chapter in a specialist book
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Book/collection name
Managing Risk in Agriculture: A Development Perspective
ISBN
978-1-80062-226-5
Number of pages of the result
14
Pages from-to
20-34
Number of pages of the book
344
Publisher name
CABI
Place of publication
Wallingford
UT code for WoS chapter
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