APPLICATION OF MEAN-GINI STOCHASTIC EFFICIENCY ANALYSIS

This article adds to the information base concerning the applicability of mean-Gini stochastic efficiency analysis in agriculture. The mean- Gini efficient set of decisions is characterized rigorously in terms o f its corresponding absolute risk aversion. In an empirical analysis, the mean-Gini efficient set of decisions is derived for four studies f rom the literature and compared to the second degree stochastic domina nce efficient set. An alternative quantitative measure of risk aversio n is used to gain insight in a visceral sense to the risk preferences associated with mean-Gini efficient decisions.