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| Hardaker, J. Brian; Pandey, Sushil; Patten, Louise H.. |
| The complexity of modelling risk in farming systems is explained and the artistic nature of the task noted. A brief outline is presented of an appropriate conceptual framework, drawing attention to the merits of stochastic efficiency criteria for analysis of systems when risk preferences of individual farmers are unavailable. A distinction is drawn between planning problems with and without embedded risk. The merits of 'utility efficient' (UE) programming are explained. Extensions of programming models, including UE formulations, to embedded risk using discrete stochastic programming are reviewed. The paper concludes with a discussion of the importance of correctly understanding the way risk impacts upon the target farming system, and then of formulating a... |
| Tipo: Journal Article |
Palavras-chave: Farm Management. |
| Ano: 1991 |
URL: http://purl.umn.edu/12460 |
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| Hardaker, J. Brian; Patten, Louise H.; Pannell, David J.. |
| A programming technique, utility-efficient programming, is developed for farm planning under risk. The objective function is the parametric sum of two parts of the utility function in which the degree of risk aversion varies systematically with the parameter. This technique has several advantages over those previously available: a number of types of utility functions are applicable including ones exhibiting decreasing risk aversion; the degree of risk aversion can be limited to a plausible range; the form of the distribution for activity net revenues is flexible; and the technique can be used with available algorithms. The method is illustrated using a parametric linear programming algorithm. |
| Tipo: Journal Article |
Palavras-chave: Farm Management; Risk and Uncertainty. |
| Ano: 1988 |
URL: http://purl.umn.edu/22959 |
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