Showing 1 - 7 of 7
Systematic approaches to validation of linear programming models are discussed for prescriptive and predictive applications to economic problems. Specific references are made to a general linear programming formulation, however, the approaches are applicable to mathematical programming...
Persistent link: https://www.econbiz.de/10005320107
Economic feasibility of Texas Blacklands corn production in relation to sorghum, wheat, and cotton is studied. Biophysical simulation generated yield data are integrated with an economic decision model using quadratic programming. Given the various scenarios analyzed, corn is economically...
Persistent link: https://www.econbiz.de/10005320185
Persistent link: https://www.econbiz.de/10005798953
Use of generalized stochastic dominance (GSD) requires one to place lower and upper bounds on the risk aversion coefficient. This study showed that breakeven risk aversion coefficients found assuming the exponential utility function delineate the places where GSD preferences switch between...
Persistent link: https://www.econbiz.de/10005459840
The effect of the farmer's choice of crop insurance was evaluated on both the farmer's and lender's performance. This was done using whole-farm, Monte Carlo simulation for Texas wheat/sorghum operations. Results indicate crop insurance would be preferred by moderately risk-averse farmers when...
Persistent link: https://www.econbiz.de/10005459972
Risk analyses often require a measure of individual risk aversion. Here a procedure is presented to calculate risk aversion parameter ranges wherein individuals would exhibit preference among a set of risky prospects.
Persistent link: https://www.econbiz.de/10005460068
A model with omitted resource constraints is suggested as an alternative to a risk aversion model for explaining economic behavior. This paper uses two standard mathematical programming models to further explore this issue. One model is a standard profit maximization linear programming model and...
Persistent link: https://www.econbiz.de/10005513259