Understanding Retained Patronage Refunds in Agricultural Cooperatives

摘要: The share of patronage refunds retained by an agricultural cooperative is modeled as arising from the portfolio decision its median member. member viewed maximizing expected utility allocating wealth between investments in farming assets and equity cooperative. Determinants are rates return on these two investments, their variances, covariance, future variance. Empirical examinations aggregate data cross-section analysis seventeen regional supply cooperatives found to be consistent with model.