A SIMPLE PROCEDURE TO EVALUATE EX-ANTE PRODUCER WELFARE UNDER PRICE UNCERTAINTY

We propose a simple and tractable procedure for evaluating producer welfare under price uncertainty. These properties are achieved at the cost of assuming constant absolute risk aversion, where risk attitude depends on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties; the validity of the constant absolute risk aversion case as an approximation is discussed.

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Year of publication:	1991
Authors:	Tsur, Yacov
Institutions:	Department of Applied Economics, College of Agricultural, Food, and Environmental Sciences
Subject:	Research Methods/ Statistical Methods

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Extent:	application/pdf
Series:	Staff Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Department of Applied Economics>Staff Papers Number 13624
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005807087