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An Empirical Analysis of the Intertemporal Stability of Risk Preferences

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  • Love, Ross O.
  • Robison, Lindon J.

Abstract

The interval measurement approach was used to obtain risk preference measures for 23 Michigan farmers in 1979 and again in 1981. This paper analyzes how risk preferences of the individuals in this group of decisionmakers changed over a two year time period. Risk preferences were most stable near typically experienced personal income levels.
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Suggested Citation

  • Love, Ross O. & Robison, Lindon J., 1982. "An Empirical Analysis of the Intertemporal Stability of Risk Preferences," Staff Paper Series 200660, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:200660
    DOI: 10.22004/ag.econ.200660
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    1. Lins, David A. & Gabriel, Stephen C. & Sonka, Steven T., 1981. "An Analysis Of The Risk Aversion Of Farm Operators: An Asset Portfolio Approach," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(1), pages 1-16, July.
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    Cited by:

    1. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    2. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, And Management Responses To Farm Risks: Evidence From Florida And Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-12, December.
    3. Maynard, Leigh J. & Harper, Jayson K. & Hoffman, Lynn D., 1997. "Impact Of Risk Preferences On Crop Rotation Choice," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-9, April.
    4. Meyer, Jack & Robison, Lindon J., 1986. "A Consistency Condition For Expected Utility And Mean Variance Analysis," 1986 Annual Meeting, July 27-30, Reno, Nevada 278153, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Parsch, Lucas D. & Loewer, Otto J., 1986. "Risk-Efficiency of Beef-Forage Rotational Grazing Under Weather Uncertainty," 1986 Annual Meeting, July 27-30, Reno, Nevada 278411, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Thompson, Troy N. & Knight, Thomas O. & Boren, Billy D., 1990. "Estimating The Value Of The 0/92 Reduced Planting Alternatives Of The 1985 Farm Bill For Farm Program Paticipants," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-11, December.
    7. Drichoutis, Andreas C. & Vassilopoulos, Achilleas, 2016. "Intertemporal stability of survey-based measures of risk and time preferences over a three-year course," MPRA Paper 73548, University Library of Munich, Germany.
    8. Carter, Joy & Maynard, Leigh J. & Dillon, Carl R., 2000. "Perfect Cross-Hedging Opportunities Via Formula Pricing: The Case Of The Broiler Industry," 2000 Annual meeting, July 30-August 2, Tampa, FL 21765, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Barham, Bradford L. & Chavas, Jean-Paul & Fitz, Dylan & Salas, Vanessa Ríos & Schechter, Laura, 2014. "The roles of risk and ambiguity in technology adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 204-218.
    10. 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.
    11. Andreas C. Drichoutis & Achilleas Vassilopoulos, 2021. "Intertemporal stability of survey‐based measures of risk and time preferences," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(3), pages 655-683, August.
    12. Mohan, Sarah, 2020. "Risk aversion and certification: Evidence from the Nepali tea fields," World Development, Elsevier, vol. 129(C).
    13. Lucas, Marilou P. & Pabuayon, Isabelita M., 2011. "Risk Perceptions, Attitudes, and Influential Factors of Rainfed Lowland Rice Farmers in Ilocos Norte, Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 8(2), pages 1-17, December.
    14. Wu, Haixia & Ge, Yan & Li, Jianping, 2023. "Uncertainty, time preference and households’ adoption of rooftop photovoltaic technology," Energy, Elsevier, vol. 276(C).
    15. Parsch, Lucas D. & Trice, Kalven L. & Cochran, Mark J. & Scott, H. Don, 1987. "Impact of Wheat Harvest Timeliness on Risk Efficiency of Double-Cropped Soybeans," Staff Papers 232557, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    16. Lombard, J. P. & Kassier, W. E., 1990. "Implementering Van Die Intervalbenadering By Die Bepaling Van Besluitnemers Se Houding Teenoor Risiko," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(4), December.
    17. Watkins, K. Bradley & Mapp, Harry, 1992. "A Risk and Water Quality Analysis of Alternative Irrigation Technologies Under Different Irrigation Management Strategies," WAEA/ WFEA Conference Archive (1929-1995) 321394, Western Agricultural Economics Association.
    18. McCamley, Francis P. & Rudel, Richard K., 1999. "Target Motad For Risk Lovers," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35723, Western Agricultural Economics Association.
    19. Rudel, Richard K. & McCamley, Francis P., 2000. "Target Motad For Risk Lovers: An Alternative Version," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36328, Western Agricultural Economics Association.
    20. Chunling Luo & Chin Hon Tan, 2020. "Almost Stochastic Dominance for Most Risk-Averse Decision Makers," Decision Analysis, INFORMS, vol. 17(2), pages 169-184, June.
    21. Liebenehm, Sabine, 2018. "Temporal Stability of Risk Attitudes and the Impact of Adverse Shocks—A Panel Data Analysis from Thailand and Vietnam," World Development, Elsevier, vol. 102(C), pages 262-274.
    22. Galizzi, Matteo M. & Machado, Sara R. & Miniaci, Raffaele, 2016. "Temporal stability, cross-validity, and external validity of risk preferences measures: experimental evidence from a UK representative sample," LSE Research Online Documents on Economics 67554, London School of Economics and Political Science, LSE Library.
    23. Chuang, Yating & Schechter, Laura, 2015. "Stability of experimental and survey measures of risk, time, and social preferences: A review and some new results," Journal of Development Economics, Elsevier, vol. 117(C), pages 151-170.
    24. Cho, In Soo, 2013. "Are Risk Attitudes Fixed Factors or Fleeting Feelings?," Staff General Research Papers Archive 35751, Iowa State University, Department of Economics.

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