| Popis: |
This analysis presents a stylized depiction of a government program such as the wetland reserve, where a social planner determines which types of wetlands are brought into production and which are left idle. If the planner is concerned with the dispersion or variance of benefits across producers as well as the mean, his decision problem is algebraically equivalent to a mean-variance portfolio model for a risk-averse individual. The model also identifies an efficient frontier of policies under various “inequality tolerance” levels. Based on available survey data, I apply this method to determine the effects of wetland dispersion on producers’ income. |
