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 field experiment to explore risk preferences related to sweet potato production among a sample of farmers in nor...
| Main Authors: | , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2011
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/154676 |
| _version_ | 1855523937835810816 |
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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 field experiment to explore risk preferences related to sweet potato production among a sample of farmers in northern Mozambique. 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 find that we can reject the null that farmers'preferences follow the CRRA utility function in favor of the more flexible power risk aversion preferences. In a mixture model, we find that about three-fourths of farmers in our sample develop risk preferences by rank dependent utility. We also find that by making the common CRRA assumption in our sample, we poorly predict risk preferences among those who are less risk averse. |
| format | Artículo preliminar |
| id | CGSpace154676 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1546762025-11-06T06:05:31Z Measuring risk attitudes among Mozambican farmers de Brauw, Alan Eozenou, Patrick sweet potatoes risk risk reduction farmers' attitudes 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 field experiment to explore risk preferences related to sweet potato production among a sample of farmers in northern Mozambique. 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 find that we can reject the null that farmers'preferences follow the CRRA utility function in favor of the more flexible power risk aversion preferences. In a mixture model, we find that about three-fourths of farmers in our sample develop risk preferences by rank dependent utility. We also find that by making the common CRRA assumption in our sample, we poorly predict risk preferences among those who are less risk averse. 2011 2024-10-01T14:03:06Z 2024-10-01T14:03:06Z Working Paper https://hdl.handle.net/10568/154676 en Open Access application/pdf International Food Policy Research Institute de Brauw, Alan and Eozenou, Patrick. 2011. Measuring risk attitudes among Mozambican farmers. HarvestPlus Working Paper 6. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/154676 |
| spellingShingle | sweet potatoes risk risk reduction farmers' attitudes 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 risk risk reduction farmers' attitudes |
| url | https://hdl.handle.net/10568/154676 |
| work_keys_str_mv | AT debrauwalan measuringriskattitudesamongmozambicanfarmers AT eozenoupatrick measuringriskattitudesamongmozambicanfarmers |