An Analysis Of The Risk Aversion Of Farm Operators: An Asset Portfolio Approach
AbstractThe absolute and relative risk aversion characteristics of a large sample of farm operators were estimated from the observed portfolio responses to changes in wealth. Regression estimates suggest that farm operators display decreasing absolute risk aversion. Relative risk aversion varies by type of farm. However, the definition of risky assets has an important bearing on relative risk aversion characteristics. Non-wealth variables are also important in explaining the holding of risky assets by farm operators.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Western Journal of Agricultural Economics.
Volume (Year): 06 (1981)
Issue (Month): 01 (July)
Farm Management; Risk and Uncertainty;
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