Abstract: The state-contingent approach developed by Chambers and Quiggin (2000) constitutes an attractive blend of a theory of production analysis under uncertainty and a theory of decision-making under uncertainty.One of the goals of this contribution is to introduce the reader to the approach by outlining its contents while comparing and contrasting it to related theories. With respect to production analysis: an emphasis is made on the ability of the approach to deliver well defined cost functions corresponding to stochastic production technologies. With respect to decision-making under uncertainty: the comparison with other theories consistent with a rational agent emphasizes the production theoretical basis of the state-contingent approach.It is the author’s belief that appropriately categorizing the state-contingent approach serves the primary goal of this work: to explore its usefulness as a basis for economic modeling. Some challenges regarding an empirical implementation are discussed: challenges in estimating the parameters of a state-contingent technology representation in general, as well as challenges arising from the fact that the approach is constructed around the argument pioneered by Leonard J Savage: that probabilities underlying economic decision-making are inherently subjective.(The financial support of ScienceCampus Halle is gratefully acknowledged.) No Label

Abstract: Climate change is noticed and well established phenomenon, described as change in the statistical properties of the climate system, considered over long period of time, regardless of cause (Houghton, 1996). This change has been monitored on global (Rosenzweig et al., 1994; Harrison et al., 1995; Wolf et al., 1995; Watson et al., 1996; Downing et al., 2000; Sathaye et al., 1997; Sirotenko et al., 1997) and regional scale (Alexandrov et al., 2002; Lalic et al., 2012; Vučetić, 2011) by researchers, organizations and part of various programmes (IPCC, UNESCO Climate Change Initiative). In a same time, it was analysed change in agroclimatic indices, soil and water balance, crop development and yield, that quantify climate change impact on agricultural production. In recent regional studies and research projects (COST 734, 2008; ADAGIO, 2009), it was estimated and quantified climate change impact on yield and development in crop production of Central and Eastern European countries and Mediterranean region. The research showed a decrease in yield in several major crops, important in national food production and part of economy. A high variability in yield from year to year and decrease in yield was showed for most cereals.

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