Sensitivity of Efficiency Frontiers Developed For Farm Enterprise Choice Decisions

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1978-07

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Ohio State University. Department of Agricultural, Environmental and Development Economics

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The sensitivity of efficiency frontiers in farm enterprise choice under risk is examined. With expected return levels held constant, substantial variation was found in farm organizations off the efficiency frontier. However, there was relatively little additional risk associated with suboptimal organizations. Expected return level substantially influenced the sensitivity of frontiers.

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