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Estimating risk aversion coefficients for dryland wheat, irrigated corn and dairy producers in Kansas

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Author Info
Abdullahi O. Abdulkadri

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Abstract

The risk attitudes of dryland wheat, irrigated corn, and dairy producers in Kansas are examined using the nonlinear mean-standard deviation approach. Results of analyses indicated that dryland wheat and dairy producers are characterized by increasing absolute and increasing relative risk aversion while irrigated corn producers are characterized by constant absolute and increasing relative risk aversion. Both crop enterprises exhibited constant returns to scale technology while the dairy enterprise exhibited decreasing returns to scale. Gross farm income was significant and positively related to relative risk aversion.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 7 (January)
Pages: 825-834
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:825-834

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