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 IESEG School of Management in its series Working Papers with number 2008-ECO-02.
Length: 16 pages
Date of creation: May 2008
Date of revision:
producer behaviour; price uncertainty; allocative inefficiency; risk aversion; agriculture;
Other versions of this item:
- Blancard, Stephane & Boussemart, Jean-Philippe & Crainich, D. & Leleu, Herve, 2008. "How can allocative inefficiency reveal risk preference? An empirical investigation on French wheat farms," 2008 International Congress, August 26-29, 2008, Ghent, Belgium, European Association of Agricultural Economists 44208, European Association of Agricultural Economists.
- 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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