How can allocative inefficiency reveal risk preference? An empirical investigation on French wheat farms
AbstractWe focus on a simple framework on wheat producer behaviour in a context of price output uncertainty. More precisely, we establish a relationship between ex post output price level and allocative inefficiency that allows to characterize farmers’ risk preferences. Given this analysis, the connection between risk aversion and other socioeconomic variables (such as degree of output specialisation, total asset, debts, farmer’s age…) can furthermore empirically be explored. This relationship is empirically tested on an unbalanced panel including about 650 wheat producers located in the French Department of Meuse over 1992- 2003.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44208.
Date of creation: 2008
Date of revision:
Producer behaviour; allocative inefficiency; risk aversion; Crop Production/Industries; Risk and Uncertainty;
Other versions of this item:
- Stéphane Blancard & Jean-Philippe Boussemart & David Crainich & Hervé Leleu, 2008. "How can allocative inefficiency reveal risk preference? An empirical investigation on French wheat farms," Working Papers 2008-ECO-02, IESEG School of Management.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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