Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

7-1992

Journal or Book Title

Journal of Agricultural and Resource Economics

Volume

17

Issue

1

First Page or Article ID Number

1

Last Page

12

Abstract

The role of price risk in sow farrowings is investigated by using bivariate ARCH-M and GARCH-M models and a nonparametric kernel estimator. To account for the relevant time horizon of irreversible supply decisions, predictions for mean price and conditional price variance are iterated forward. The empirical results vary markedly in terms of their implications for risk response in hog supply decisions, with the ARCH-M and GARCH-M models suggesting a small and negative risk effect. Estimates of the marginal risk premium also indicate moderate and variable departures from marginal cost pricing in sow far­ rowing supply decisions.

Comments

This article is from Journal of Agricultural and Resource Economics 17 (1992): 1. Posted with permission.

Copyright Owner

Western Agricultural Economics Association

Language

en

File Format

application/pdf

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