Agriculture operates in an uncertain environment. Yields, prices, and resource usage can change dramatically from year to year. However, most analyses of the agricultural sector, at least those using mathematical programming methods, assume decision making is based on average yields, ignoring...

We employ a game-theoretic principal agent framework to analyze the individual farmer and governmental behavior pre- and post-animal disease outbreak. We examine the gap between the privately optimal and socially optimal levels of ex ante biosecurity investment and then investigate how a...

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...

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.

Currently, different dimensions of mitigation strategies have been investigated in policy analysis. However, ambitious mitigation action aiming at reducing future climate change will not prevent much climate change before mid-century. Short-term and medium-term temperature as well as associated...

Agricultural production and water resources are sensitive to climate variability and change. Decadal climate variability (DCV) phenomena are in the early stages of being explored. This paper investigates the economic value of DCV information in the Edwards Aquifer region of Texas as well as...

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...

Agriculture operates in an uncertain environment. Yields, prices, and resource usage can change dramatically from year to year. However, most analyses of the agricultural sector, at least those using mathematical programming methods, assume decision making is based on average yields, ignoring...

Model validation is a topic which has a long history in the literature This article attempts to focus much of the previous discussion upon agricultural economics models. True model validation is not possible. Nevertheless, model validation exercises improve the relevancy of models and strengthen...