DIE METING VAN BESPROEIINGSBOERE SE ABSOLUTE RISIKOVERMYDINGSKOEFFISIENTE MET BEHULP VAN DIE INTERVALMETODE: DIE IMPLIKASIES VAN SKAALAANPASSINGS

The aim of this research is to analyse the influence of adjustment of the absolute risk-aversion scale, as well as the width of cumulative distributions on respondents' risk-preferences. The consistency of risk-attitudes has also been determined. The majority of farmers in the region revealed extreme risk-preferences - either risk-seeking or risk-aversion. Furthermore, the decisionmakers who completed the questionnaire at the higher levels of bank balances were significantly more consistent than those who completed the questionnaire at the lower levels. If the width over which the distributions extend, increases, the preferences of a few farmers tends to change from risk-neutral to risk-averse. By propagating the concept of probability distributions for the evaluation of risky alternatives, a beter understanding of risk and risk management can be brought about, which will result in easier obtaining of riskmeasuring results.


Other Titles:
Measuring irrigation farmers' absolute risk-aversion coefficients by means of the interval approach: The implications of scale adjustments
Issue Date:
1993-06
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/267570
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 32, Issue 2
Page range:
60-73




 Record created 2018-01-31, last modified 2018-04-02

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