The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, Volume 89, Number 3, August 2007.

This paper presents a unified treatment of the production and financial decisions available to a firm facing frictionless financial markets and a stochastic production technology under minimal assumptions on the firm's stochastic technology and objective function. The specific focus is on...

This paper studies the structure of state-contingent contracts in the presence of moral hazard and multi-tasking. Necessary and sufficient conditions for the presence of multi-tasking to lead to fixed payments instead of incentive schemes are identified. It is shown that the primary determinant...

Most, if not all, production technologies are stochastic. This article demonstrates how data envelopment analysis (DEA) methods can be adapted to accommodate stochastic elements in a state-contingent setting. Specifically, we show how observations on a random input, not under the control of the...

The standard approach to modelling production under uncertainty has relied on the concept of the stochastic production function. In the present paper, it is argued that a state‐contingent production model is more flexible and realistic. The model is applied to the problem of drought policy.