Single-index models from portfolio theory have previously been adapted for risk efficient farm planning in North America. The potential for using single-index models in farm planning is considered in this paper both theoretically and in the light of two illustrative Australian case studies. It...

The process by which producers form expectations has implications for model building and policy analysis. An econometric model of the Australian wool market is estimated. It is shown that the rational expectations hypothesis is not inconsistent with the data for both the period before the floor...