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Estimation of Farmers' Risk Attitude: An Econometric Approach

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  • Bar-Shira, Z.
  • Just, Richard E.
  • Zilberman, David

Abstract

An econometric procedure for estimating Arrow‐Pratt coefficients of risk aversion is derived. The model of farmers allocating land among different crops, and time between leisure and labor, allows for testing Arrow's hypotheses of decreasing absolute risk aversion and increasing relative risk aversion. The empirical results support these hypotheses.
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Suggested Citation

  • Bar-Shira, Z. & Just, Richard E. & Zilberman, David, 1994. "Estimation of Farmers' Risk Attitude: An Econometric Approach," Working Papers 197812, University of Maryland, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:umdrwp:197812
    DOI: 10.22004/ag.econ.197812
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    Keywords

    Farm Management; Risk and Uncertainty;

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