JDS
HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS
QUICK SEARCH:   [advanced]


     

Journal of Dairy Science Vol. 64 No. 8 1713-1718
© 1981 by American Dairy Science Association ®
This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Download to citation manager
Right arrow reprints & permissions
Citing Articles
Right arrow Citing Articles via Google Scholar
Google Scholar
Right arrow Articles by Schneeberger, M.
Right arrow Articles by Boehlje, M. D.
Right arrow Search for Related Content
PubMed
Right arrow Articles by Schneeberger, M.
Right arrow Articles by Boehlje, M. D.

Estimation of a Utility Function from Semen Purchases from Holstein Sires1

M. Schneeberger2, A. E. Freeman and M. D. Boehlje

Departments of Animal Science and Economics, Iowa State University, Ames 50011

ABSTRACT

Weighting of expected income versus risk of a decision maker is expressed by his utility function; it can be estimated by analyzing his portfolio selection. To estimate a utility function of dairymen, the portfolio selection was measured by semen purchases or expenditures by dairymen for semen of 328 Holstein sires of eight bull studs. Purchases were divided into those from technicians and direct. Three indexes combining Predicted Differences for milk, fat, and type were constructed to estimate gross income of dairymen. Income after subtracting semen price also was used for three additional indexes. Multiple regression analyses were used to estimate coefficients or weights of the utility function. The weight for expected income was significant for all indexes. Coefficients for risk (measured as variance of income) were highly significant for gross income indexes and one index after semen price was subtracted. These coefficients were significant when portfolio selection was measured by expenditures for total semen purchased and for semen purchased directly by dairymen and distributors. Coefficients were nonsignificant for purchases from technicians and for portfolio selection measured by units of semen purchased. Dairymen based their selection of semen mainly on expected income. A tendency towards risk aversion was observed.

FOOTNOTES

1 Journal Paper No. J-9771 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Project 1053.

2 Institute for Animal Production, Swiss Federal Institute of Technology, Zurich, Switzerland.






HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS
Copyright © 1981 by the American Dairy Science Association ®.