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Evaluation of Selected Fresh Vegetable Terminal Markets: A Stochastic Dominance Approach

Published online by Cambridge University Press:  09 September 2016

Roger Hinson ,
Mooyul Huh  and
John G. Lee
Roger Hinson
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana Agricultural Experiment Station, Louisiana State University, Baton Rouge, LA
Mooyul Huh
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana Agricultural Experiment Station, Louisiana State University, Baton Rouge, LA
John G. Lee
Affiliation:
Agricultural Economics, Purdue University, West Lafayette, IN
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Abstract

Vegetable production can offer a high-valued cash crop alternative. While returns may be high, vegetables are perceived to have more risk than conventional row crops. This study used stochastic dominance analysis to evaluate terminal market price risk for four vegetable crops across five market locations. Results from the analysis identify differences in efficient market selection depending on the form which price risk follows. While vegetables as a whole are considered risky, substantial differences in the type of terminal market price variability existed between the commodities.

Keywords

market windowsvegetable price riskstochastic dominance

Information

Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 2 , December 1990 , pp. 39 - 48
Copyright
Copyright © Southern Agricultural Economics Association 1990

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