Title :

A decomposition of profit loss under output price uncertainty

Author(s) :

Boussemart, Jean Philippe [Auteur]
Lille économie management - UMR 9221 [LEM]
UFR de Mathématiques, Informatique, Management, Economie [UFR MIME]
Crainich, David [Auteur]
Lille économie management - UMR 9221 [LEM]
Leleu, Herve [Auteur]
Lille économie management - UMR 9221 [LEM]
Université Catholique de Lille - Faculté de gestion, économie et sciences [UCL FGES]

Journal title :

European Journal of Operational Research

Pages :

1016--1027

Publisher :

Elsevier

Publication date :

2015-06

ISSN :

0377-2217

English keyword(s) :

Profit loss
Risk preference
Technical inefficiency
Data envelopment analysis
Fattening pig farms

HAL domain(s) :

Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

In this paper, firm profit loss is decomposed as the sum of two terms related to the output price uncertainty (price expectation error and risk preference), plus one extra term expressing technical inefficiency. We then ...
Show more >In this paper, firm profit loss is decomposed as the sum of two terms related to the output price uncertainty (price expectation error and risk preference), plus one extra term expressing technical inefficiency. We then describe the implementation of our theoretical model in a robust data envelopment analysis (DEA) framework, which allows an effective and separate estimation of each term of the decomposition. In addition, we offer an operational tool to reveal producers’ risk preferences. A 2009 database of French fattening pig farms is used as an illustration. Our results indicate that risk preference and technical inefficiency are the main sources of profit loss.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL