Risk and Time Preferences of West African Cattle Farmers
AbstractThis study investigates risk and time preferences of small-scale cattle farmers in West Africa and examines how demographic and socio-economic characteristics are related to these preferences. Using a maximum likelihood approach we jointly estimate risk and time preferences. Our findings show that, overall the West African cattle farmer shows poor performance in using probability information and is generally risk averse. The average cattle farmers’ time preferences indicate a higher degree of patience than expected. We also find that income, education, and religion are highly correlated with risk and time preferences.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by German Association of Agricultural Economists (GEWISOLA) in its series 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 with number 156110.
Date of creation: 2013
Date of revision:
Experiments; prospect theory; risk preference; time preference; West Africa; Livestock Production/Industries; Research Methods/ Statistical Methods; Risk and Uncertainty;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffery Carpenter & Juan Camilo Cardenas, 2006.
"Behavioural Development Economics: Lessons from field labs in the developing world,"
Middlebury College Working Paper Series, Middlebury College, Department of Economics
0616, Middlebury College, Department of Economics.
- Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 44(3), pages 311-338.
- Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, Elsevier, vol. 27(3), pages 531-543, May.
- Peter P. Wakker, 2008. "Explaining the characteristics of the power (CRRA) utility family," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 17(12), pages 1329-1344.
- Matthew Rabin & Ted O'Donoghue, 1999.
"Doing It Now or Later,"
American Economic Review, American Economic Association,
American Economic Association, vol. 89(1), pages 103-124, March.
- Ted O'Donoghue & Matthew Rabin, 1996. "Doing It Now or Later," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1172, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ted O'Donoghue and Matthew Rabin ., 1997. "Doing It Now or Later," Economics Working Papers, University of California at Berkeley 97-253, University of California at Berkeley.
- O'Donoghue, Ted & Rabin, Matthew, 1997. "Doing It Now or Later," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt7t44m5b0, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Loewenstein, George & Prelec, Drazen, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 573-97, May.
- Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2010. "Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam," American Economic Review, American Economic Association, American Economic Association, vol. 100(1), pages 557-71, March.
- Glenn W. Harrison & Morten I. Lau & Melonie B. Williams, 2001.
"Estimating Individual Discount Rates in Denmark: A Field Experiment,"
NCEE Working Paper Series, National Center for Environmental Economics, U.S. Environmental Protection Agency
200102, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Nov 2001.
- Glenn W. Harrison & Morten I. Lau & Melonie B. Williams, 2002. "Estimating Individual Discount Rates in Denmark: A Field Experiment," American Economic Review, American Economic Association, American Economic Association, vol. 92(5), pages 1606-1617, December.
- Glenn Harrison & Morten Lau & Elisabet Rutstrom & Melonie Williams, 2002. "Estimating individual discount rates in denmark: A field experiment," Artefactual Field Experiments, The Field Experiments Website 00062, The Field Experiments Website.
- Steffen Andersen & Glenn Harrison & Morten Lau & E. Rutström, 2009.
"Elicitation using multiple price list formats,"
Experimental Economics, Springer,
Springer, vol. 12(3), pages 365-366, September.
- Liu, Elaine M. & Huang, JiKun, 2013.
"Risk preferences and pesticide use by cotton farmers in China,"
Journal of Development Economics, Elsevier,
Elsevier, vol. 103(C), pages 202-215.
- Elaine Liu & JiKun Huang, 2013. "Risk Preferences and Pesticide Use by Cotton Farmers in China," Working Papers, Department of Economics, University of Houston 201310920, Department of Economics, University of Houston.
- Mahmud Yesuf & Randall A. Bluffstone, 2009. "Poverty, Risk Aversion, and Path Dependence in Low-Income Countries: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 91(4), pages 1022-1037.
- Steffen Andersen & Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2008. "Eliciting Risk and Time Preferences," Econometrica, Econometric Society, Econometric Society, vol. 76(3), pages 583-618, 05.
- Quang Nguyen, 2011. "Does nurture matter: Theory and experimental investigation on the effect of working environment on risk and time preferences," Journal of Risk and Uncertainty, Springer, Springer, vol. 43(3), pages 245-270, December.
- Nguyen, Quang & Leung, Pingsun, 2010. "How nurture can shape preferences: an experimental study on risk preferences of Vietnamese fishers," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 15(05), pages 609-631, October.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometrica, Econometric Society,
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Laibson, David I., 1997.
"Golden Eggs and Hyperbolic Discounting,"
4481499, Harvard University Department of Economics.
- Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, Elsevier, vol. 50(2), pages 257-296, August.
- Drazen Prelec, 1998. "The Probability Weighting Function," Econometrica, Econometric Society, Econometric Society, vol. 66(3), pages 497-528, May.
- Benhabib, Jess & Bisin, Alberto & Schotter, Andrew, 2010. "Present-bias, quasi-hyperbolic discounting, and fixed costs," Games and Economic Behavior, Elsevier, Elsevier, vol. 69(2), pages 205-223, July.
- Tversky, Amos & Kahneman, Daniel, 1992. " Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, Springer, vol. 5(4), pages 297-323, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.