An econometric procedure for estimating Arrow-Pratt coefficients of risk aversion is derived. The model of farmers allocating land among different crops, and time between leisure and labor, allows for testing Arrow's hypotheses of decreasing absolute risk aversion and increasing relative risk...

Although it is known that access to physical infrastructure enhances household welfare, there are hardly any micro-econometric studies that analyze the role of infrastructure in mitigating chronic and transient poverty. This paper aims to bridge this gap in the existing literature by evaluating...

Communal land use system has existed in pastoral Afar (as in many other pastoral areas) since time of immemorial accommodating the interests of different user groups. This form of land use system, which has adapted to the harsh environment in which herders raise their livestock, enables...

Cropping pattern in the Himalayan region of India has undergone a significant change in the recent past. Introduction of horticultural crops of vegetables, fruits and flowers have led to more intensive agriculture. Such a change, resulting in higher incomes and improvements of the overall living...

The purpose of this paper is to examine, using choice experiments, the Japanese consumers’ valuation of domestic Wagyu beef, domestic dairy beef, Australian beef, and US beef when considering their bovine spongiform encephalopathy (BSE) test status. Some Japanese consumers give high priority...

Transgenic pest-resistant varieties are hypothesized to reduce farmers’ demand for on-farm diversity through an act of substitution, as both serve as production risk reducing instruments. This adverse agro-biodiversity impact of technology adoption might be partially counteracted by an...

In arid countries worldwide, social conflicts between irrigation-based human development and the conservation of aquatic ecosystems are widespread and attract many public debates. This research focuses on the analysis of water and agricultural policies aimed to conserve groundwater resources and...

The typical model of retail pricing for produce products assumes retailers set price equal to the farm price plus a certain markup. However, observations from scanner data indicate a large degree of price dispersion in the grocery retailing market. In addition to markup pricing behavior, we...

Systemic weather risk is a major obstacle for the formation of private (nonsubsidized) crop insurance. This paper explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather conditions in different locations. For that purpose copula...

In this paper we specify and estimate producers’ risk preference using farm data. We allow heterogeneous risk preference across individuals and propose a specification to model the heterogeneity. We base farmers’ decision making on a utility maximization framework and incorporate both market...