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Conceptual Foundations of Expectations and Implications for Estimation of Risk Behavior

  • Richard E. Just
  • Gordon C. Rausser
Chapter
Part of the Natural Resource Management and Policy book series (NRMP, volume 23)

Abstract

Many prominent agricultural economists suggest that risk has only a second-order effect in the agricultural economy and that attention should rather be focused on understanding first-order effects. To determine whether risk effects are of first- or second-order importance, however, producers cannot be modeled in isolation. The linkages among input suppliers and downstream processing, wholesaling, and distribution are also critical. Many of the other agents in agriculture and food systems are keenly concerned not only about market risk but also about basis, credit, and output risk.

Keywords

Risk Aversion Expected Utility Agricultural Economic Rational Expectation Risk Preference 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Richard E. Just
    • 1
    • 2
  • Gordon C. Rausser
    • 1
    • 2
  1. 1.University of MarylandBerkeleyUSA
  2. 2.University of CaliforniaBerkeleyUSA

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