Area Allocation Under Price Uncertainty on Dutch Arable Farms
利用均值-方差效用函数构建双模型，研究荷兰可耕地农场在产出价格不确定下如何同时决定面积分配与生产投入水平，并检验风险偏好与曲率条件。
This paper uses a Mean‐Variance utility function to build a dual model that simultaneously determines area allocation and production/input levels under output price uncertainty. Regularity conditions of the indirect utility function (convexity) and producers risk preferences are tested. The framework is applied to a rotating sample of Dutch arable farms. Dutch arable farmers are found to be risk averse, with the size of the risk premium given by 3 per cent of annual profit. A bootstrap resampling method shows that curvature conditions are rejected. Price elasticities are compared for an unrestricted model and for a model with curvature conditions being imposed.