The state-contingent approach to the economics of uncertainty: agricultural and general applications

The proposed project represents an extension of a successful collaboration with Professor Robert G. Chambers on the state-contingent production approach to the economics of uncertainty. The state-contingent approach will be systematically applied to the main agricultural issues involving uncertainty, including production flexibility, insurance, storage, input demand, drought relief, price stabilisation, contracting problems, output choices and competitive equilibrium. The aim is not only to produce a clearer and more coherent analysis of these problems than has been feasible in the past, but to make possible an integrated treatment of hitherto disparate issues.