A SIMPLE PROCEDURE TO EVALUATE EX-ANTE PRODUCER WELFARE UNDER PRICE UNCERTAINTY

We propose a simple and tractable procedure for evaluating producer welfare under price uncertainty. These properties are achieved at the cost of assuming constant absolute risk aversion, where risk attitude depends on the stock of wealth but not on the flow of income. Numerical examples corroborate the procedure's properties; the validity of the constant absolute risk aversion case as an approximation is discussed.Research Methods/ Statistical Methods,

ON TESTING FOR REVEALED PREFERENCE CONDITIONS

A procedure to test for the significance of violations of revealed preference conditions is described. The procedure is simple and hence may especially be appropriate for large data sets. An application to consumption data is presented.Research Methods/ Statistical Methods,

GROUNDWATER CONTAMINATION AND THE MANAGEMENT OF A CONJUNCTIVE GROUND AND SURFACE WATER IRRIGATION SYSTEM

Irrigation water (including rainfall) that infiltrates the subsurface carries salts, pesticide and fertilizer residues, and other trace elements, thus causing a contamination of aquifers and soils. A similar situation occurs when irrigating with saline groundwater (aquifers containing saline water often are found in arid and semi-arid regions, where agricultural production depends critically on groundwater irrigation). Evaporation of the irrigation water increases salt concentration, causing salinization of soils and aquifers. Although not immediately noticeable, these quality deterioration processes will have long-term effects and therefore require careful management. The paper describes a general framework for the intertemporal management of a conjunctive ground and surface water irrigation system, taking into account the quality deterioration processes. Policy implications are discussed and the results are compared with those that come from a model which neglects quality effects.Resource /Energy Economics and Policy,

TESTING THE SIGNIFICANCE OF DEVIATIONS FROM RATIONAL BEHAVIOR

We propose procedures for testing statistically the significance of violations of nonparametric tests of optimization axioms when observed behavior is measured with error. The tests are robust against parametric specification of the error distribution, thus are nonparametric in both the statistical and economic senses, and are readily implemented numerically. An illustration with demand data is presented.Research Methods/ Statistical Methods,