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An Evaluation of Selected Decision Models: A Case of Crop Choice in Northern Thailand

Published online by Cambridge University Press:  28 April 2015

Gary R. Vieth  and
Pramote Suppapanya
Gary R. Vieth
Affiliation:
Department of Agricultural and Resource Economics, University of Hawaii, Manoa
Pramote Suppapanya
Affiliation:
Department of Agricultural and Resource Economics, University of Hawaii, Manoa
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Abstract

This research examines the predictability of a profit maximization model, an expected value-variance utility maximization (E-V) model, and two versions of the target-MOTAD model for modeling risky agricultural production decisions. Model solutions were translated into expected value and variance of farm income for analysis. Direct comparison and chi-square analysis of actual and predicted expected income distributions were used in the analyses. It was concluded that the utility maximization and cash-cost target-MOTAD models predicted distributions of farm income better than the variable-cost target-MOTAD and profit maximization models.

Keywords

decision modelsexpected utility maximizationfarm incomeprofit maximizationtarget-MOTAD
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 28 , Issue 2 , December 1996 , pp. 381 - 391
Copyright
Copyright © Southern Agricultural Economics Association 1996

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