A theoretical framework is developed to study the effects of socioeconomic factors on farmers' risk attitudes and production decisions. No maintained assumptions about the individual's utility are required. A key element in this framework is the categorization of socioeconomic factors by their...

The risk premium and the probability premium are used to determine appropriate coefficients of absolute risk aversion under CARA utility. A defensible range of risk aversion coefficients is defined by the coefficients that correspond to risk premiums falling between 1 and 99% of the amount at...

The study is focused on the development and the application of a stochastic economic optimisation model by which optimal levels of applied water and sprinkler spacing are determined. Data on crop-water production function and uniformity of water application are taken from a sprinkler irrigation...