Intertemporal Risk Management Decisions of Farmers under Preference, Market, and Policy Dynamics



Optimal Hedge Ratio


Figure 7. Sensitivity of Optimal Hedge Ratios in Response to Intertemporal Substitutability

0.32

0.31

0.3

0.29

0.28

0.27

0.26

0.25

-4.2

-3.2

-2.2

-1.2

-0.2

0.8


-5.2


42




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