Savings and technology choice for risk averse farmers

Farmers in developing countries have limited opportunities for borrowing to even out variability associated with risky farm income, but they can save. A dynamic programming model of savings is presented in the current paper which examines optimal savings strategies for farmers, using a case study of integrated rice-shrimp farms in Vietnam. It is shown that when savings are accounted for, the expected utility ranking of different risky farm choices may not differ that much between farmers with different levels of risk aversion.


Issue Date:
2002
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/118593
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 46, Issue 4
Page range:
501-513
Total Pages:
13




 Record created 2017-04-01, last modified 2017-11-25

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