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Preferences, personality, aspirations, and farmer behavior

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  • Ladina Knapp
  • David Wuepper
  • Robert Finger

Abstract

There is a growing literature that incorporates not only economic preferences, such as risk preferences, but also personality and aspirations into economic choice models. Here, we investigate how these concepts relate to each other and can explain observed economic choices. More specifically, we explore the role of risk preferences, personality (self‐efficacy and locus of control), and aspirations for farmers’ choices to adopt preventive measures against pests, buy cropinsurance, and to be entrepreneurially active. To this end, a sample of 568 Swiss fruit growers is analyzed. We find that for the adoption of preventive measures against pests, the best predictors are the farmers’ locus of control and their aspirations. For crop insurance demand, all behavioral variables, and especially risk preferences, contribute to explain farmers’ choices. For farmers’ entrepreneurial choice, we find that locus of control and their risk preferences are the best predictors. Our results reveal considerable domain specificity of preferences, personality, and aspirations in economic choice models.

Suggested Citation

  • Ladina Knapp & David Wuepper & Robert Finger, 2021. "Preferences, personality, aspirations, and farmer behavior," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 901-913, November.
    • Handle: RePEc:bla:agecon:v:52:y:2021:i:6:p:901-913
    DOI: 10.1111/agec.12669
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    Cited by:

    1. Robert Finger & David Wüpper & Chloe McCallum, 2023. "The (in)stability of farmer risk preferences," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 155-167, February.
    2. Finger, Robert & Möhring, Niklas, 2022. "The adoption of pesticide-free wheat production and farmers' perceptions of its environmental and health effects," Ecological Economics, Elsevier, vol. 198(C).
    3. Huber, Robert & Späti, Karin & Finger, Robert, 2023. "A behavioural agent-based modelling approach for the ex-ante assessment of policies supporting precision agriculture," Ecological Economics, Elsevier, vol. 212(C).
    4. Selina Bruns & Bernhard Dalheimer & Oliver Musshoff, 2022. "The effect of cognitive function on the poor's economic performance: Evidence from Cambodian smallholder farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 468-480, May.
    5. Herrington, Caitlin L. & Maredia, Mywish K. & Ortega, David L. & Reyes, Byron A., 2023. "The Impact of Endogenous and Exogenous Factors on Farmer Willingness-to-Pay for Biofortified Bean Seed: A Field Experiment in Rural Zimbabwe," 2023 Annual Meeting, July 23-25, Washington D.C. 335918, Agricultural and Applied Economics Association.
    6. Mack, G. & Finger, R. & Ammann, J. & El Benni, N., 2023. "Modelling policies towards pesticide-free agricultural production systems," Agricultural Systems, Elsevier, vol. 207(C).

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