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Estimating a production function under production and price risks: An application to the suckler cow farms in the French charolais production area AgEcon
Mosnier, Claire; Reynaud, Arnaud; Thomas, Alban; Lherm, Michel; Agabriel, Jacques.
Suckler cow production in France relies mainly on a relatively extensive management of forage, implying that production risk may be enhanced by the sensitivity of those crops to weather variability. However risk exposure is supposed to be mitigated either through ex-ante decisions concerning pasture area management or through ex-post decisions concerning the purchase of feeds. This paper aims at assessing weather impacts on cattle production level decisions. Since farmers' decisions depend on farmers' behaviour regarding risks, which are namely production and price risks, we test constant absolute risk aversion, constant relative risk aversion and risk neutrality assumptions. We develop an econometric model encompassing an auto-regressive price function...
Tipo: Conference Paper or Presentation Palavras-chave: Production function estimation; GMM; Weather impact; Price and production risks; Risk aversion; Suckler cow farms; French charolais production area; Livestock Production/Industries; Production Economics.
Ano: 2007 URL: http://purl.umn.edu/9246
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