The state-contingent approach to production economics presented by Chambers and Quiggin provides a new basis for deriving optimality criteria for production under uncertainty. In the present paper criteria are formally derived for risk-averse producers. It is not possible to derive useful...

This paper uses representative farm account data for 1985-2007 to estimate stochastic production frontiers in the form of input distance functions for Danish crop, dairy and pig farms. The objective is to study and compare scale economies for the three farm types. The estimated technical...

Current methods of risk management focus on efficiency and do not provide operational answers to the basic question of how to optimise and balance the two objectives, maximisation of expected income and minimisation of risk. This paper uses the Capital Asset Pricing Model (CAPM) to derive an...

The importance of risk management increases as farmers become more exposed to risk. But risk management is a difficult topic because income risk is the result of the complex interaction of multiple risk factors combined with the effect of an increasing array of possible risk management tools. In...

Current methods of risk management focus on efficiency and do not provide operational answers to the basic question of how to optimise and balance the two objectives, maximisation of expected income and minimisation of risk. This paper uses the Capital Asset Pricing Model (CAPM) to derive an...

The importance of risk management increases as farmers become more exposed to risk. But risk management is a difficult topic because income risk is the result of the complex interaction of multiple risk factors combined with the effect of an increasing array of possible risk management tools. In...

This paper presents the results of an empirical analysis of technological change and economies of scale in Danish agriculture. The estimation is based on a multi-output, multi-input translog cost function and covers the period 1973-1995. The results show that technological change varied...

In a recent paper Rasmussen (Rasmussen 2003) derived criteria for optimal production under uncertainty based on the state-contingent approach developed by Chambers and Quiggin (2000). While the criteria in the 2003-paper were derived for the one variable input case, and for different types of...

This paper describes a cost function approach to modelling production and resource use at the level of the individual farm firm. The procedure for deriving the supply function using mathematical programming under fairly general condition of a convex input set is shown, and the model is...

All agricultural sector models must deal with aggregation and calibration somehow. The aggregation problem involves treating a group of producers as if they all responded in the same way as a single representative unit. The calibration problem concerns making a model reproduce as closely as...