AGRICULTURAL DIVERSITY AND CASH RECEIPT VARIABILITY FOR INDIVIDUAL STATES
Tauer, Loren W.; Seleka, Tebogo B.
Changes in individual states' agricultural production diversity and variance of cash receipts were measured over the 30-year period 1960 through 1989. Diversity was measured using a general index, of which the inverse Herfindahl and the Entropy are special cases. Cash receipt variability was measured using a heteroscedasticity correction process. Although 38 states experienced an increase in cash receipt variability, only 14 states also experienced a decrease in diversification. Thus, it appears that an increase in cash receipt variability was not due to reduction in diversification for most states.
Charles H. Dyson School of Applied Economics and Management, Cornell University