scholarly journals Economies of diversification and stochastic dominance analysis in French mixed sheep farms

2022 ◽  
pp. 1-22
Author(s):  
Jean Joseph Minviel ◽  
Marc Benoit
Keyword(s):  
Stochastic Dominance ◽  
Risk Mitigation ◽  
Farming Systems ◽  
Downside Risk ◽  
Risk Exposure ◽  
Dominance Analysis ◽  
Farm Diversification ◽  
High Degree ◽  
Risk Reducing ◽  
Economies Of Diversification

Abstract Farm diversification is mainly driven by risk mitigation effects and economic gains related to complementarities between production activities. By combining these two aspects, we investigate diversification economies in a sample of French mixed sheep farming systems and rank these systems using stochastic dominance criteria. Partially diversified systems (Sheep-Grass, Sheep-Crop, Sheep-Landless) and fully diversified systems (Sheep-Grass-Crop-Landless) were evaluated. We find a high degree of diversification diseconomies in the sheep farming systems considered. The results also indicate that the fully diversified system is driven by its risk-reducing effects (including downside risk exposure) and that Sheep-Crop is the dominant system in terms of risk-adjusted returns.

scholarly journals A Framework for Risk-Based Cost–Benefit Analysis for Decision Support on Hydrogeological Risks in Underground Construction

Geosciences ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 82
Author(s):  
Johanna Merisalu ◽  
Jonas Sundell ◽  
Lars Rosén
Keyword(s):  
Decision Support ◽  
Cost Benefit Analysis ◽  
Risk Mitigation ◽  
Ground Surface ◽  
Cost Benefit ◽  
Expert Elicitation ◽  
Benefit Analysis ◽  
Underground Construction ◽  
Groundwater Leakage ◽  
Risk Reducing

Construction below the ground surface and underneath the groundwater table is often associated with groundwater leakage and drawdowns in the surroundings which subsequently can result in a wide variety of risks. To avoid groundwater drawdown-associated damages, risk-reducing measures must often be implemented. Due to the hydrogeological system’s inherent variability and our incomplete knowledge of its conditions, the effects of risk-reducing measures cannot be fully known in advance and decisions must inevitably be made under uncertainty. When implementing risk-reducing measures there is always a trade-off between the measures’ benefits (reduced risk) and investment costs which needs to be balanced. In this paper, we present a framework for decision support on measures to mitigate hydrogeological risks in underground construction. The framework is developed in accordance with the guidelines from the International Standardization Organization (ISO) and comprises a full risk-management framework with focus on risk analysis and risk evaluation. Cost–benefit analysis (CBA) facilitates monetization of consequences and economic evaluation of risk mitigation. The framework includes probabilistic risk estimation of the entire cause–effect chain from groundwater leakage to the consequences of damage where expert elicitation is combined with data-driven and process-based methods, allowing for continuous updating when new knowledge is obtained.

scholarly journals Risk Inequality and the Polarized American Electorate

2010 ◽  
Vol 41 (2) ◽  
pp. 363-387 ◽  
Author(s):  
Philipp Rehm
Keyword(s):  
Low Risk ◽  
Risk Exposure ◽  
Poor People ◽  
Economic Factors ◽  
Exposure Risk ◽  
Income Risk ◽  
Political Landscape ◽  
Future Income ◽  
High Degree ◽  
Socio Economic Factors

Why has the American political landscape grown more partisan since the 1970s? This article provides a novel account of the determinants of partisanship. The author argues that partisanship is not only shaped by the traditionally suggested socio-economic factors, but also by the uncertainty of future income (risk exposure): rich individuals facing a high degree of risk exposure (or poor people facing low risk exposure) are ‘cross-pressured’; while their income suggests that they should identify with the Republicans, their income prospects make them sympathize with the Democrats. These two traits have overlapped increasingly since the 1970s. Those with lower incomes tend to be also those with higher risk exposure (risk inequality increased). This has led to a sorting of the American electorate: more citizens have become ‘natural’ partisans.

scholarly journals Determinants of downside risk exposure of dairy farms

2018 ◽  
Vol 45 (4) ◽  
pp. 641-674 ◽  
Author(s):  
Robert Finger ◽  
Tobias Dalhaus ◽  
Joseph Allendorf ◽  
Stefan Hirsch
Keyword(s):  
Dairy Farms ◽  
Downside Risk ◽  
Risk Exposure

scholarly journals Generalized Multiplicative Risk Apportionment

Risks ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 65
Author(s):  
Hongxia Wang
Keyword(s):  
Risk Aversion ◽  
Stochastic Dominance ◽  
Downside Risk ◽  
Risk Apportionment ◽  
Risk Increase ◽  
Multiplicative Risk ◽  
Increase In Risk

This work examines apportionment of multiplicative risks by considering three dominance orderings: first-degree stochastic dominance, Rothschild and Stiglitz’s increase in risk and downside risk increase. We use the relative nth-degree risk aversion measure and decreasing relative nth-degree risk aversion to provide conditions guaranteeing the preference for “harm disaggregation” of multiplicative risks. Further, we relate our conclusions to the preference toward bivariate lotteries, which interpret correlation-aversion, cross-prudence and cross-temperance.

Stochastic dominance and mean-standard deviation analysis: some critical issues

1995 ◽  
Vol 46 (7) ◽  
pp. 1487 ◽  
Author(s):  
KA Parton ◽  
PS Carberry
Keyword(s):  
Standard Deviation ◽  
Stochastic Dominance ◽  
Probability Distributions ◽  
Dominance Analysis ◽  
Deviation Analysis ◽  
Critical Issues ◽  
Effective Procedures

Stochastic dominance and mean-standard deviation analysis can be effective procedures for ranking risky alternatives that are expressed in terms of probability distributions of outcomes. However, the conditions applying to their use and their limitations need to be understood. These are set out in the paper, together with an extension that overcomes some constraints to the use of stochastic dominance analysis.

Stochastic Dominance Analysis for More Profitable and Less Risky Irrigation of Corn

jpa ◽  
1992 ◽  
Vol 5 (2) ◽  
pp. 243-247 ◽  
Author(s):  
J.E. Epperson ◽  
H.E. Hook ◽  
Y.R. Mustafa
Keyword(s):  
Stochastic Dominance ◽  
Dominance Analysis
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