Introducing socioeconomic characteristics into production analysis under risk

A theoretical framework is developed to study the effects of socioeconomic factors on farmers' risk attitudes and production decisions. No maintained assumptions about the individual's utility are required. A key element in this framework is the categorization of socioeconomic factors by their effect on the farmer's risk attitudes. A simple methodology for this categorization, based on the equivalence between the Arrow-Pratt measure of risk aversion and the probability of winning demanded, is proposed. The latter is illustrated with data collected in a survey of 180 Israeli farmers from 20 villages.


Issue Date:
1996-02
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/173782
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 13, Issue 3
Page range:
149-161
Total Pages:
14




 Record created 2017-04-01, last modified 2018-01-22

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