Description
Book SynopsisThis text is the first major survey of risk analysis from the perspective of the agricultural firms since Agricultural Decision Analysis by Anderson, Dillon, and Hardaker published in 1977. In addition to updating the traditional material from that text, this book includes the statistical foundations of decision making under risk and uncertainty. Adding to the material covered in Anderson, Dillon, and Hardaker, the text includes material on dynamic decision rules, the arbitrage pricing model, real options theory, and state-contingent production relationships. Risk, Uncertainty, and the Agricultural Firm provides a unique discussion of each application — developing the theoretical basis for each model and presenting an empirical roadmap (or the “nuts and bolts”) of each model to facilitate the empirical application of each technique.
Table of ContentsProbability Theory - A Mathematical Basis for Making Decisions under Risk and Uncertainty; Expected Utility - The Economic Basis of Decision Making Under Risk; Risk Aversion in the Large and Small; Portfolio Theory and Decision Making Under Risk; Whole Farm Planning Models; Risk Efficiency Approaches-Stochastic Dominance; Dynamic Decision Rules and the Value of Information; Market Models of Decision Making Under Risk; Option Pricing Approaches to Risk; State Contingent Production Model - The Stochastic Production Set; Risk, Uncertainty, and the Agricultural Firm - A Summary and Outlook.
