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...

The paper reviews the empirical problem of estimating state-contingent production functions. The major problem is that states of nature may not be registered and/or that the number of observation per state is low. Monte Carlo simulation is used to generate an artificial, uncertain production...

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...

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...

Preface -- 1 Introduction -- 2 The Production Function -- 3 Optimisation with One Input -- 4 Production and Optimisation with Two or More Inputs -- 5 Costs -- 6 Productivity, Efficiency and Technological Changes -- 7 Input Demand Functions -- 8 Land and Other Inputs -- 9 The Company's Supply...

1 Introduction -- 2 The Production Function -- 3 Optimisation with One Input -- 4 Production and Optimisation with Two or More Inputs -- 5 Costs -- 6 Productivity, Efficiency and Technological Changes -- 7 Input Demand Functions -- 8 Land and Other Inputs -- 9 The Company's Supply Function -- 10...

Preface -- 1 Introduction -- 2 Decision Theory Elements -- 3 Utility Function -- 4 State-Contingent Outcome and Preference -- 5 Preferences and Subjective Probabilities -- 6 Formulation of the Decision Problem -- 7 Connections Between Input and State-Contingent Output -- 8 Optimising Production...