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Comparing risk attitudes of organic and non-organic farmers with a Bayesian random coefficient model

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  • Cornelis Gardebroek
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    Abstract

    Organic farming is usually considered to be more risky than conventional farming, but the risk aversion of organic farmers compared with that of conventional farmers has not been studied. Using a non-structural approach to risk estimation, a Bayesian random coefficient model is used to obtain individual Arrow--Pratt coefficients of absolute risk aversion for a sample of Dutch organic and non-organic arable farmers. The model is estimated using Gibbs sampling. The results indicate that organic farmers are significantly less risk averse than their non-organic colleagues. Copyright 2006, Oxford University Press.

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    Bibliographic Info

    Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

    Volume (Year): 33 (2006)
    Issue (Month): 4 (December)
    Pages: 485-510

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    Handle: RePEc:oup:erevae:v:33:y:2006:i:4:p:485-510

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    Cited by:
    1. Sauer, Johannes & Latacz-Lohmann, Uwe, 2012. "Efficient Innovation in Dairy Production - Empirical Findings for Germany," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137386, German Association of Agricultural Economists (GEWISOLA).
    2. Latruffe, Laure & Nauges, Céline, 2010. "Technical efficiency and conversion to organic farming: the case of France," TSE Working Papers 10-209, Toulouse School of Economics (TSE).
    3. Britz, Wolfgang & van Ittersum, Martin K. & Oude Lansink, Alfons G.J.M. & Heckelei, Thomas, 2012. "Tools for Integrated Assessment in Agriculture. State of the Art and Challenges," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.

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