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Drought policy: a graphical analysis *
Author(s) -
Quiggin John,
Chambers Robert G.
Publication year - 2004
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2004.00249.x
Subject(s) - production (economics) , function (biology) , production model , computer science , state (computer science) , economics , mathematical economics , econometrics , microeconomics , algorithm , evolutionary biology , biology
The standard approach to modelling production under uncertainty has relied on the concept of the stochastic production function. In the present paper, it is argued that a state‐contingent production model is more flexible and realistic. The model is applied to the problem of drought policy.