Department of Agricultural, Food, and Resource Economics Elton R. Smith Endowment

This work, conducted almost entirely with Harvey Lapan, is methodological; emphasizing order and heterogeneity among random variables and vectors that enter a decision setting. The setting could be a private optimization problem or equations that characterize an equilibrium in perfectly or imperfectly competitive markets. The tools used are majorization theory, group theory, structured multivariate distributions, arrangement increasing functions, stochastic orders and copulas. There are several application areas.

Portfolios and diversification.

• Lapan, H.E., and D.A. Hennessy. “Symmetry and Order in the Portfolio Allocation Problem.” Economic Theory, 19(4, 2002):747-772. Link
• Hennessy, D.A., and H.E. Lapan. “The Use of Archimedean Copulas to Model Portfolio Allocations.” Mathematical Finance, 12(April, 2002):143-154. Link
• Hennessy, D.A., and H.E. Lapan. “A Definition of ‘More Systematic Risk’ with Some Welfare Implications.” Economica, 70(August, 2003):493-507. Link
• Hennessy, D.A., and H.E. Lapan. “An Algebraic Theory of Portfolio Allocation.” Economic Theory, 22(August, 2003):193-210. Link
• Hennessy, D.A. “Orthogonal Subgroups for Portfolio Choice.” Economics Bulletin, 7(1, 2004):1-7. Link
• Hennessy, D.A., and H.E. Lapan. “On the Nature of Certainty Equivalent Functionals.” Journal of Mathematical Economics, 43(December, 2006):1-10. Link

Production technologies.

• Hennessy, David A., and H.E. Lapan. “Technology Asymmetries, Group Algebra, and Multi-Plant Cost Minimization.” Economic Inquiry, 41(January, 2003):183-192. Link
• Hennessy, D.A., and H.E. Lapan. “An Algebraic Theory of the Multi-Product Decisions.” Economic Theory, 25(June, 2005):819-829. Link

Imperfectly competitive markets.

• Lapan, H.E., and D.A. Hennessy. “A Note on Cost Arrangement and Market Performance in a Multi-Product Cournot Oligopoly.” International Journal of Industrial Organization, 24(May, 2006):583-591. Link
• Hennessy, D.A., and H.E. Lapan. “When Different Market Concentration Indices Agree.” Economics Letters, 95(May, 2007):234-240. Link
• Lapan, H.E., and D.A. Hennessy. “Statistical Moments Analysis of Production and Welfare in Multi-Product Cournot Oligopoly.” International Journal of Industrial Organization, 26(March, 2008):598-606. Link
• Hennessy, D.A., and H.E. Lapan. “Harmonic Symmetries of Imperfect Competition on Circular City.” Journal of Mathematical Economics, 45(January, 2009):124-146. Link

Environmental.

• Hennessy D.A., and H.E. Lapan. “Buying Ecological Services: Fragmented Reserves, Core and Periphery National Park Structure, and the Agricultural Extensification Debate.” Natural Resource Modeling, 23(May, 2010):176-216. Link

Trade.

• Hennessy, D.A., and H.E. Lapan. “Taste Asymmetries and Trade Patterns.” Economics Bulletin, 4(June, 2003):1-14. Link

Crop Insurance.

• Saak, A.E., D.A. Hennessy, and B.A. Babcock. “Fair Value of Whole-Farm and Crop-Specific Revenue Insurance.” Selected paper, meetings of the American Association of Agricultural Economics, Montreal, Quebec, July, 2003. Link