Sunday,  December 17, 2017

Articles

Volume 66 (2017), Number 2: 124-139

Comparing the Use of Risk-influencing Production Inputs and Experimentally Measured Risk Attitude:
Do the Decisions of Indonesian Small-scale Rubber Farmers Match?

Stefan Moser and Oliver Mußhoff

This article compares the use of risk-increasing and risk-reducing production inputs with the experimentally measured risk attitudes of farmers. For this purpose, a Just-Pope production function indicates production inputs’ influence on output risk, and a Holt-Laury lottery is used to measure farmers’ risk attitudes. We then test whether more risk averse farmers use more risk-reducing and less risk-increasing production inputs. To do so, a unique data set which includes 185 small-scale rubber farmers on the island of Sumatra, Indonesia, is used. The Just-Pope production function suggests that higher fertiliser usage has a risk-reducing effect, whereas higher herbicide usage has a risk-increasing effect. Comparing this with the outcome of a Holt-Laury lottery, we found that more risk averse farmers use more fertiliser (risk-reducing) and less herbicides (risk-increasing). The consistency of these results can be interpreted as reinforcing the external validity of measuring risk attitude with a Holt-Laury lottery.

This article compares the use of risk-increasing and risk-reducing production inputs with the experimentally measured risk attitudes of farmers. For this purpose, a Just-Pope production function indicates production inputs’ influence on output risk, and a Holt-Laury lottery is used to measure farmers’ risk attitudes. We then test whether more risk averse farmers use more risk-reducing and

Back to Content

If you are not yet a subscriber you can buy this single article here.
Subscribers, please log in.


Contact author:
DR. STEFAN MOSER
Farm Management Group
Department of Agricultural Economics and Rural Development, Faculty of Agricultural Sciences
Georg-August-Universität Göttingen
Platz der Göttinger Sieben 5, 37073 Göttingen, Germany
e-mail: smoser@gwdg.de


Login

NEW: GJAE listed with Impact Factor!

The German Journal of Agricultural Economics (GJAE) is listed in the ‚Impact Factor List‘. Our current (2016) impact factor is 0.489. So if you plan to write an article, use this evidence for getting cited.

Question/ suggestion?

Do you have any questions, please don't hesitate to get in touch with us.

Always up-to-date

Please send us your e-mail address to be informed -for free- about the upcoming issues.

powered by

dfv Mediengruppe
Our partners:
www.agrarzeitung.de www.feedmagazine.net