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Rationality, Price Risk, and Response

Published online by Cambridge University Press:  28 April 2015

James L. Seale Jr.  and
J. S. Shonkwiler
James L. Seale Jr.
Affiliation:
Food and Resource Economics Department, University of Florida
J. S. Shonkwiler
Affiliation:
Food and Resource Economics Department, University of Florida
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Abstract

Risk has long been recognized as potentially important in determining agricultural supply. However, supply response models have either incorporated risk in an ad hoc manner or not at all. A rational expectations supply response model incorporating price risk is developed, an estimation procedure suggested, and an empirical example presented.

Keywords

risksupply responserational expectations
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 19 , Issue 1 , July 1987 , pp. 111 - 118
Copyright
Copyright © Southern Agricultural Economics Association 1987

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