FrmrsRspns2WeathrVar_1.0.0.pdf
Resource Name:
FrmrsRspns2WeathrVar_1.0.0.pdf
File Size:
893.24 KB
Resource Type:
Pdf Documents
Title:
Farmers' response to weather variability: a state-contingent approach using farm level data
Publication Date:
29/06/2013
Description:
Overview
The paper is an investigation of competing frameworks for modelling decision making under uncertainty in the context of dairy irrigation in the Murray, Goulburn, and Loddon-Avoca regions in the Murray-Darling Basin. Using data from the ABARES irrigation survey over the periods 2006-07 to 2009-10, two milk production technologies are estimated under competing frameworks: stochastic production and state-contingent production. The estimated models are evaluated statistically, and it is found that the state-contingent production approach is consistent with, and better represents, the data - this implies that farmers may be more flexible in responding to climate variability than many previous analyses have assumed.
Key Issues
Many analyses of farmer responses to weather variability to date have relied on a restrictive assumption that farmers operate under a fixed technology set across different states of nature. This assumption is seldom tested and may understate farmers' responses to climate change if production technologies are in reality more flexible.
The main result of the paper is that the more flexible (state-contingent) approach is better representative of milk production, indicating that this may be considered when modelling the impact of weather uncertainty on production
Resource URL Description:
0 : Farmers' response to weather variability: a state-contingent approach using farm level data - presentation - PDF [0.9 MB]
1 : Farmers' response to weather variability: a state-contingent approach using farm level data - presentation - MS Word [0.2 MB]
Publisher:
ABARES : Australian Bureau of Agricultural and Resource Economics and Sciences : Department of Agriculture
Author:
MALLAWAARACHCHI Thilak
NAUGES Celine
SANDERS Orion
QUIGGIN John
Right Management:
Use constraints: copyright
Other constraints: Licence type:Copyright
Other constraints: Trends in total factor productivity of five key Commonwealth managed fisheries (and any material sourced from it) should be attributed as: Mallawaarachchi T, Nauges C, Sanders O and Quiggin J 2013, Farmers' response to weather variability: a state-contingent approach using farm level data
Asset Name:
pp_fr2wvd9abh_20130626_11a