Programming Methods for Risk-Efficient Choice

  • C. Robert Taylor
  • Thomas P. Zacharias
Chapter
Part of the Natural Resource Management and Policy book series (NRMP, volume 23)

Abstract

Programming models were prominent in early theoretical and empirical research on risk-efficient choices, beginning primarily with Freund’s (1956) seminal incorporation of risk into a quadratic programming (QP) model. Building on the QP formulation, subsequent model developments in agricultural economics generally dealt with introducing risk into a computationally feasible programming format, or dealt with introducing different types of risk-aversion assumptions such as safety-first, or mean-variance (EV), into a programming format. Models that incorporate risk have pertained primarily to an individual’s or a firm’s decision, although a few programming models have been proposed to apply in the aggregate.

Keywords

Risk Aversion Agricultural Economic Stochastic Dominance Bayesian Statistic Memorial Lecture 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • C. Robert Taylor
    • 1
    • 2
  • Thomas P. Zacharias
    • 1
    • 2
  1. 1.Auburn UniversityUSA
  2. 2.National Crop Insurance ServiceUSA

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