Premium
Risk preference and optimal crop combinations in upland Java, Indonesia: an application of stochastic programming
Author(s) -
Nanseki Teruaki,
Morooka Yoshinori
Publication year - 1991
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1991.tb00134.x
Subject(s) - preference , cropping , java , revenue , agriculture , stochastic programming , economics , affect (linguistics) , crop , stochastic modelling , econometrics , agricultural science , agricultural economics , computer science , microeconomics , mathematics , statistics , geography , forestry , biology , linguistics , philosophy , accounting , archaeology , finance , programming language
A stochastic programming model was used to evaluate the economic performance of a soybean‐based farming system in upland Java. The model incorporates farmers' risk preferences, revenue fluctuations and resources restrictions. The results show that (1) changes in risk preference do affect the optimal crop combination, and (2) the typical cropping pattern is rational under the present level of the farmers' risk preference estimated in the study site.