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Incorporating Government Program Provisions into a Mean-Variance Framework
Published online by Cambridge University Press: 05 September 2016
Abstract
E-V studies traditionally have relied on historical data to calculate returns and variance. Historical data may not fully reflect current conditions, particularly when decisions involve government-supported crops. This paper presents a method for calculating mean and variance using subjectively-estimated data. The method is developed for both government-supported and non-program crops. Comparisons to alternative methods suggest the approach provides reasonable accuracy.
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- Copyright © Southern Agricultural Economics Association 1989