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In a framework developed by P.J. Dawson, the effects of output price risk on the family labour supply and its demand for hired labour are investigated. In particular, the effects of changes in autonomous income, expected output price, family composition, and farm size are studied. Comparative statics is used to sign these effects, revealing the importance of the behavior of the measures of absolute, relative and partial risk aversion in determining them. It is shown that some of the effects may be determined only via empirical research.


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