Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Measurement of Importance of Risk on Supply Response of Corn and Soybeans

W. L. Nieuwoudt, Abner W. Womack and Stanley R. Johnson
North Central Journal of Agricultural Economics
Vol. 10, No. 2 (Jul., 1988), pp. 281-292
DOI: 10.2307/1349227
Stable URL: http://www.jstor.org/stable/1349227
Page Count: 12
  • Download ($36.00)
  • Subscribe ($19.50)
  • Cite this Item
Measurement of Importance of Risk on Supply Response of Corn and Soybeans
Preview not available

Abstract

Risk response was included at the aggregate level in positive supply models for corn and soybeans. The welfare cost of risk was measured, allowing for interactions between product demand and supply functions as well as in the risk specification. Impacts of risk response are simulated within a simultaneous equation modeling system. Findings indicate that consumers gain but producers lose from reduction in risk. The social cost of risk as a percentage of the value of the crop was estimated for corn and soybeans at 0.36 percent and 0.35 percent, respectively.

Page Thumbnails

  • Thumbnail: Page 
[281]
    [281]
  • Thumbnail: Page 
282
    282
  • Thumbnail: Page 
283
    283
  • Thumbnail: Page 
284
    284
  • Thumbnail: Page 
285
    285
  • Thumbnail: Page 
286
    286
  • Thumbnail: Page 
287
    287
  • Thumbnail: Page 
288
    288
  • Thumbnail: Page 
289
    289
  • Thumbnail: Page 
290
    290
  • Thumbnail: Page 
291
    291
  • Thumbnail: Page 
292
    292