Abstract
A decomposition of input adjustments for stochastic technologies is developed and applied to the case of actuarially fair production insurance. The decomposition consists of a pure-risk effect and an expansion effect which are analogous to the Hicks-Allen decomposition familiar from consumer theory.
Original language | English |
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Pages (from-to) | 20-34 |
Number of pages | 15 |
Journal | American Journal of Agricultural Economics |
Volume | 83 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2001 |