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A Simple Procedure to Evaluate Ex Ante Producer Welfare under Price Uncertainty
Author(s) -
Tsur Yacov
Publication year - 1993
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242952
Subject(s) - economics , ex ante , simple (philosophy) , welfare , econometrics , microeconomics , constant (computer programming) , stock (firearms) , risk aversion (psychology) , mathematical economics , expected utility hypothesis , macroeconomics , computer science , mechanical engineering , philosophy , epistemology , engineering , market economy , programming language
A simple procedure is proposed for evaluating producer welfare under price uncertainty. The method is derived under the assumption of constant absolute risk aversion in which risk preferences depend on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties.