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dc.creatorDu, Wen
dc.creatorWang, H. Holly
dc.date2004-08-31T12:14:05Z
dc.date2007-03-07T16:02:40Z
dc.date2004-08-31T12:14:05Z
dc.date2007-03-07T16:02:40Z
dc.date2004
dc.date.accessioned2012-06-14T23:48:56Z
dc.date.available2012-06-14T23:48:56Z
dc.date.issued2012-06-14
dc.identifier14821
dc.identifierhttp://purl.umn.edu/36205
dc.identifier.urihttps://repositorio.leon.uia.mx/xmlui/123456789/53176
dc.descriptionIn this paper we attempt an intertemporal study of risk management decisions for wheat growers in the Pacific Northwest. We apply a generalized expected utility model (GEU) to examine the farmers optimal choices of hedging ratios and crop insurance coverage levels in the presence of government payment programs in a multi-period production environment. A stochastic trend model is used to identify the long-term time series patterns of annual wheat yields, cash prices, and futures prices from two counties in Washington. The fitted models are then used as the base for yield and price simulation over the next five years. The stochastic dynamic optimization problem is solved numerically based on simulated data. The optimal solutions indicate that the GEU model is feasible in modeling farmers intertemporal decisions regarding risk management. The comparison between GEU model and some commonly used expected utility models further implies the advantage of the GEU model in being flexible to specify farmers intertemporal preferences separately and completely.
dc.format32
dc.formatapplication/pdf
dc.languageEnglish
dc.languageen
dc.publisherAgEcon Search
dc.relationWestern Agricultural Economics Association>2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii
dc.relationSelected Paper of the 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii
dc.subjectCrop Production/Industries
dc.subjectRisk and Uncertainty
dc.titleINTERTEMPORAL DECISIONS OF FARMERS RISK MANAGEMENT: A DYNAMIC OPTIMIZATION WITH GENERALIZED EXPECTED UTILITY
dc.typeWorking or Discussion Paper


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