A Genetic Algorithm Approach to Farm Investment |
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| Authors: | Oscar Cacho & Phil Simmons |
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| Institution: | Department of Agricultural and Resource Economics, University of New England, Armidale, NSW 2351, Australia |
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| Abstract: | A farm portfolio model is specified with two risky enterprises and a risk-free asset which may be held short or long by the farmer. The model is solved numerically using a genetic algorithm. It is shown that the assumption of competitive adaptation leads to a violation of normative efficiency. Those who survive are not the most efficient in a normative sense. |
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