Skip to main content Accessibility help
×
Home

Effect of Debt Position on the Choice of Marketing Strategies for Florida Orange Growers: A Risk Efficiency Approach

  • Charles B. Moss (a1), Stephen A. Ford (a2) and Mario Castejon (a1)

Abstract

This study examined the relationship between debt position and choice of marketing instrument. Specifically, this study employed first and second degree stochastic dominance, and stochastic dominance with respect to a function to determine whether the efficient marketing instrument changes between debt positions. The results indicate that the choice of marketing instrument does vary with debt position in some marketing periods if the decisionmaker is moderately risk averse.

Copyright

References

Hide All
Anderson, J. R., Dillon, J. L., and Hardaker, . Agricultural Decision Analysis. Ames: Iowa State University Press, 1977.
Boggess, W. G. and Ritchie, J. T.. “Economic and Risk Analysis of Irrigation Decisions in Humid Regions.J. Production Agr., 1(1988): 116122.
Collins, R. A.Expected Utility, Debt-Equity Structure, and Risk Balancing.Am. J. Agr. Econ., 67(1985):627629.
Fishburn, P. C.Expected Utility: An Anniversary and a New Era.J. Risk and Uncertainty, 1(1988): 267283.
Florida Agricultural Statistics. Citrus Summary 1987-88. Orlando, Florida, 1988.
Florida Citrus Processors Association. Statistical Summary 1986-87 Season. Winter Haven, Florida, 1988.
Florida Department of Citrus. Unpublished data on Frozen Concentrate Orange Juice Prices. Gainesville, Florida.
Gabriel, S. C. and Baker, C. B.. “Concepts of Business and Financial Risk.Am. J. Agr. Econ., 62(1980): 560564.
Kaylen, M. S., Preckel, P. V., and Loehman, E. T.. “Risk Modeling Via Direct Utility Maximization Using Numerical Quadrature.Am. J. Agr. Econ. 69(1987): 701706.
King, R.P. and Robison, L.J.Risk Efficiency Models.Risk Management in Agriculture. Barry, P.J., ed., pp. 6881. Ames: Iowa State University Press, 1984.
Lintner, J.The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets.Rev. Econ. and Stat, 47(1965): 1337.
Meyer, J.Second Degree Stochastic Dominance with Respect to a Function.Int. Econ. Rev., 18(1977): 477486.
Meyer, J.Two-Moment Decision Models and Expected Utility Maximization.Am. Econ. Rev., 77(1987): 253263.
Moss, C. B. and van Blokland., P. J.Debt Choice and Marketing Instruments: The Case of Frozen Concentrated Orange Juice.” Department of Food and Resource Economics, University of Florida, Staff Paper 402, January 1990.
Moss, C.B., Ramirez, O.A., and Boggess, W.G.. “Modeling Nonnormality in Multivariate Distributions Using an Inverse Hyperbolic Sine Transformation to Normality.” Department of Food and Resource Economics, Staff Paper 91-16, University of Florida, March 1991.
Mossin, J.Equilibrium in a Capital Asset Market.Econometrica, 34(1966): 768783.
Muraro, R.P., Hurner, G.T. and Oswald, T.W.. “Budgeting Costs and Returns: Central Florida Citrus Production 1988-89.” Food and Resource Economics Department, Economic Information Report No. 248, University of Florida, 1989.
Raskin, R. and Cochran, M. J.. “Interpretations and Transformation of Scale for the Pratt-Arrow Absolute Risk Aversion Coefficient: Implications for Generalized Stochastic Dominance.West. J. Agr. Econ., 11(1986a): 204210.
Raskin, R. and Cochran, M. J.. “A User's Guide to the Generalized Stochastic Dominance Program for the IBM PC.University of Arkansas, Staff Paper 3786, (1986b).
Rausser, G. C, Chalfant, J. A., Love, H. A., and Stamoulis, K. G.. “Macroeconomic Linkages, Taxes, and Subsidies in the U. S. Agricultural Sector.” Am. J. Agr. Econ., 68(1986): 339412.
Schuh, G. E.The New Macroeconomics of Agriculture.Am. J. Agr. Econ., 57(1976): 384389.
Sharpe, W. F.Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk.J. Finance, 19(1964): 425442.
Tobin, J.Liquidity Preferences as Behavior Towards Risk.Rev. Econ. Studies, 15(1958): 6585.
Tomek, W. G. and Robinson, K.. Agricultural Product Prices. Ithaca, New York: Cornell University Press, 1981.
Turvey, C. G. and Baker, T. G.. “Optimal Hedging Under Alternative Capital Structures and Risk Aversion.Can. J. Agr. Econ., 37(1989): 135143.
Tweeten, L.Impact of Federal Fiscal-Monetary Policy on Farm Structure.So. J. Agr. Econ., 15(1983): 6171.
U.S. Department of Commerce. Business Statistics. Washington, D. C: various issues 1972 to 1986.

Keywords

Effect of Debt Position on the Choice of Marketing Strategies for Florida Orange Growers: A Risk Efficiency Approach

  • Charles B. Moss (a1), Stephen A. Ford (a2) and Mario Castejon (a1)

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed