Measuring risk attitudes among Mozambican farmers
Although farmers in developing countries are generally thought to be risk averse, little is known about the actual form of their risk preferences. In this paper, we use a relatively large lab-in-the-field experiment to explore risk preferences related to sweet potato production among a sample of far...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
2014
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/149838 |
| _version_ | 1855526148292739072 |
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| author | de Brauw, Alan Eozenou, Patrick |
| author_browse | Eozenou, Patrick de Brauw, Alan |
| author_facet | de Brauw, Alan Eozenou, Patrick |
| author_sort | de Brauw, Alan |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Although farmers in developing countries are generally thought to be risk averse, little is known about the actual form of their risk preferences. In this paper, we use a relatively large lab-in-the-field experiment to explore risk preferences related to sweet potato production among a sample of farmers in northern Mozambique. A unique feature of this experiment is that it includes a large subsample of husband and wife pairs. After exploring correlations between husband and wife preferences, we explicitly test whether preferences follow the constant relative risk aversion (CRRA) utility function, and whether farmers follow expected utility theory or rank dependent utility theory in generating their preferences. We reject the null hypothesis that farmers' preferences follow the CRRA utility function, in favor of the more flexible power risk aversion preferences. If we make the common CRRA assumption in our sample, we poorly predict risk preferences among those who are less risk averse. |
| format | Journal Article |
| id | CGSpace149838 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1498382025-02-24T06:48:10Z Measuring risk attitudes among Mozambican farmers de Brauw, Alan Eozenou, Patrick sweet potatoes field experimentation laboratories farmers' attitudes risk Although farmers in developing countries are generally thought to be risk averse, little is known about the actual form of their risk preferences. In this paper, we use a relatively large lab-in-the-field experiment to explore risk preferences related to sweet potato production among a sample of farmers in northern Mozambique. A unique feature of this experiment is that it includes a large subsample of husband and wife pairs. After exploring correlations between husband and wife preferences, we explicitly test whether preferences follow the constant relative risk aversion (CRRA) utility function, and whether farmers follow expected utility theory or rank dependent utility theory in generating their preferences. We reject the null hypothesis that farmers' preferences follow the CRRA utility function, in favor of the more flexible power risk aversion preferences. If we make the common CRRA assumption in our sample, we poorly predict risk preferences among those who are less risk averse. 2014-11 2024-08-01T02:50:03Z 2024-08-01T02:50:03Z Journal Article https://hdl.handle.net/10568/149838 en https://hdl.handle.net/10568/154676 Open Access Elsevier de Brauw, Alan; and Eozenou, Patrick. 2014. Measuring risk attitudes among Mozambican farmers. Journal of Development Economics 111(November 2014): 61-74. https://doi.org/10.1016/j.jdeveco.2014.08.002 |
| spellingShingle | sweet potatoes field experimentation laboratories farmers' attitudes risk de Brauw, Alan Eozenou, Patrick Measuring risk attitudes among Mozambican farmers |
| title | Measuring risk attitudes among Mozambican farmers |
| title_full | Measuring risk attitudes among Mozambican farmers |
| title_fullStr | Measuring risk attitudes among Mozambican farmers |
| title_full_unstemmed | Measuring risk attitudes among Mozambican farmers |
| title_short | Measuring risk attitudes among Mozambican farmers |
| title_sort | measuring risk attitudes among mozambican farmers |
| topic | sweet potatoes field experimentation laboratories farmers' attitudes risk |
| url | https://hdl.handle.net/10568/149838 |
| work_keys_str_mv | AT debrauwalan measuringriskattitudesamongmozambicanfarmers AT eozenoupatrick measuringriskattitudesamongmozambicanfarmers |