Modelling of Catastrophic Farm Risks Using Sparse Data

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This paper compares alternative ways of conducting a farm risk analysis using sparse data with a special reference to catastrophe events. For this purpose kernel and multivariate normal smoothing procedures are proposed and applied to generate (simulate) the joint distributions of crop yields and prices. The analysis showed that the functional forms chosen to generate the joint distribution substantially impacted the density in the tail of the distribution, although they were parameterised with the same data. The differences in the optimal farm plan (i.e. activity levels) resulting from the optimisation of net farm income, obtained from a utility-efficient programming model, were less profound.
Original languageEnglish
Title of host publicationHandbook of Operations Research in Agriculture and the Agri-Food Industry
EditorsLluis M. Plà-Aragone
Place of PublicationNew York
PublisherSpringer New York LLC
Pages259-275
Volume224
ISBN (Print)9781493924837
DOIs
Publication statusPublished - 2015

Publication series

NameInternational Series in Operations Research & Management Science
Number224
ISSN (Print)0884-8289

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