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Crop diversification and risk: an empirical analysis of Indian states

Mukherjee, Sanchita (2010): Crop diversification and risk: an empirical analysis of Indian states.

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Abstract

The current study explores relationship between the crop diversification and risk in India. Herfindahl Index has been used to analyse the level of crop diversification across the major states over the period of study. An effort has been made to compute yield risk and price risk of each state using the Markowitz's Mean-variance theory and map it with the crop diversification for the corresponding states. Result shows that, while the relationship is positive in the case of crop-diversification and yield risk, we cannot conclude the relationship between crop diversification and price risk.

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