The objectives of this paper are to incorporate a measure of risk aversion in the translog frontier cost function to estimate cost inefficiency. Risk-averse behaviour of farmers is hypothesised to reduce efficiency by leading to a situation in which the marginal value product of an input is less...

Risk-taking preferences were elicited from small semi-commercial farmers in Northern Thailand using an experimental procedure that included real manetar:; payoffs of meaningful magnitudes. A total of five sets of lotteries with increasing payoffs were offered. The farmers were found to be risk...

We examine the relative influence of preferences and technology on producers' ex ante willingness to pay for a reduction in production risk. A risk averse producer pays both an Arrow-Pratt risk premium to stabilize income and a 'production premium' to stabilize yield. Using soil-nitrate risks as...

In this paper the impact of price risk on millet production in Niger is investigated. The hypothesis that farmers respond to output price risk is tested. The results indicate that millet acreage planted decreased when millet price risk increased or when price risk of the competing crop decreased...

The objectives of this paper are to develop a measure of risk aversion based on the safety-first principle. The risk coefficient for a large number of farmers was positive indicating the tendency towards gambling in Bangladesh agriculture. Farmers who were near subsistence income (disaster level...

Agricultural production is risky. When farmers are risk-averse, they are likely to put a premium on production methods that reduce perceived risks. Irrigation is generally believed to be a riskreducing input. By using the concept of stochastic dominance, risk-efficient irrigation policies for...

A stochastic programming model was used to evaluate the economic performance of a soybean-based farming system in upland Java. The model incorporates farmers' risk preferences, revenue fluctuations and resources restrictions. The results show that (1) changes in risk preference do affect the...

The short-run effects of fungicide application on economic risk and the effects of risk on fungicide use in Swiss wheat production are empirically explored. A quadratic production function model is developed. With the help of the moment-based approach, marginal contributions of fungicides...

A new non-parametric method to estimate a decision maker's coefficient of absolute risk aversion from observed economic behaviour is explained. The method uses the expected value-variance (E-V) framework and quadratic programming. An empirical illustration is given using Norwegian farm-level...

Risk and uncertainty have been extensively studied by agricultural economists. In this paper we question (a) the predominant use of static frameworks to formally analyse risk; (b) the predominant focus on risk aversion as the motivation for considering risk and (c) the notion that explicitly...