Advanced Search
MyIDEAS: Login to save this paper or follow this series

Attitudes towards Risk of Forest Dependent Communities - Evidence from Andhra Pradesh

Contents:

Author Info

  • Sundar, B.
  • Virmani, Vineet
Registered author(s):

    Abstract

    This study is an attempt to generate empirical evidence on attitude towards risk of forest dependent communities (FDCs). The FDCs covered in the study include two different geographical regions from the Indian state of Andhra Pradesh – Rayalaseema (a relatively dry forest region with low income) and the coastal region (relatively fertile forest and with higher income). Attitude towards risk was measured as the revealed degree of risk aversion (as a constant relative risk aversion coefficient) from the multiple price list methodology. With these measures, on average, members of FDCs from Rayalaseema were found to be more risk averse as compared to their counterparts from the coastal region. Using interval regression, the study also looked at the role of income and socioeconomic variables on their risk behaviors. For members of FDCs from Rayalaseema, income was not found to be a contributor towards risk aversion. Including socioeconomic variables in the regression showed that on average being men, married and a shared decision-maker within family contributed positively to risk aversion, and membership to managing committee and having adult children in the family negatively so. Degree of risk aversion for members of FDCs in the coastal region, however, did show a role for income, albeit weak statistically. In particular, members from the low and high income groups were found to be risk seeking and those from the middle income groups risk averse, with family size and education contributing positively to risk aversion and proximity to urban centers negatively so.

    Download Info

    If 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.
    File URL: http://www.iimahd.ernet.in/assets/snippets/workingpaperpdf/14846613122013-12-01.pdf
    File Function: English Version
    Download Restriction: no

    Bibliographic Info

    Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP2013-12-01.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:iim:iimawp:12147

    Contact details of provider:
    Phone: 91 79 2630 7241
    Fax: 91 79 2630 6896
    Web page: http://www.iimahd.ernet.in/publications
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Steffen Andersen & Glenn Harrison & Morten Lau & E. Rutström, 2006. "Elicitation using multiple price list formats," Experimental Economics, Springer, vol. 9(4), pages 383-405, December.
    2. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2009. "Are Risk Aversion and Impatience Related to Cognitive Ability?," CESifo Working Paper Series 2620, CESifo Group Munich.
    3. Peter Bardsley & M. Harris, 1987. "An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 31(2), pages 112-126, 08.
    4. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
    5. Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
    6. Kumar, Sanjay, 2002. "Does "Participation" in Common Pool Resource Management Help the Poor? A Social Cost-Benefit Analysis of Joint Forest Management in Jharkhand, India," World Development, Elsevier, vol. 30(5), pages 763-782, May.
    7. Angus Deaton, 2003. "Household Surveys, Consumption, and the Measurement of Poverty," Economic Systems Research, Taylor & Francis Journals, vol. 15(2), pages 135-159.
    8. Uri Gneezy & Kenneth Leonard & John List, 2009. "Gender differences in competition: Evidence from a matrilineal and a patriarchal society," Artefactual Field Experiments 00049, The Field Experiments Website.
    9. Gine, Xavier & Townsend, Robert & Vickery, James, 2007. "Patternsof rainfall insurance participation in rural India," Policy Research Working Paper Series 4408, The World Bank.
    10. Catherine C. Eckel & Philip J. Grossman, 2002. "Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk," Development Research Unit Working Paper Series archive-03, Monash University, Department of Economics.
    11. Diana Fletschner & C. Leigh Anderson & Alison Cullen, 2010. "Are Women as Likely to Take Risks and Compete? Behavioural Findings from Central Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 46(8), pages 1459-1479.
    12. Michal Bauer & Julie Chytilová, 2013. "Women, Children and Patience: Experimental Evidence from Indian Villages," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 662-675, November.
    13. John Knight & Sharada Weir & Tassew Woldehanna, 2003. "The role of education in facilitating risk-taking and innovation in agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 39(6), pages 1-22.
    14. Steffen Andersen & Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2008. "Eliciting Risk and Time Preferences," Econometrica, Econometric Society, vol. 76(3), pages 583-618, 05.
    15. Sachiko Miyata, 2003. "Household's risk attitudes in Indonesian villages," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 573-583.
    16. Eggert, Håkan & Tveterås, Ragnar, 2001. "Stochastic Production and Heterogeneous Risk Preferences: Commercial Fishers’ Gear Choices," Working Papers in Economics 54, University of Gothenburg, Department of Economics.
    17. Becker, Gary S & Mulligan, Casey B, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 729-58, August.
    18. Sheryl Ball & Catherine Eckel & Maria Heracleous, 2010. "Risk aversion and physical prowess: Prediction, choice and bias," Journal of Risk and Uncertainty, Springer, vol. 41(3), pages 167-193, December.
    19. Bockstael, Nancy E. & Opaluch, James J., 1983. "Discrete modelling of supply response under uncertainty: The case of the fishery," Journal of Environmental Economics and Management, Elsevier, vol. 10(2), pages 125-137, June.
    20. Jonathan Davies & Richard Bennett, 2007. "Livelihood adaptation to risk: Constraints and opportunities for pastoral development in Ethiopia's Afar region," Journal of Development Studies, Taylor & Francis Journals, vol. 43(3), pages 490-511.
    21. Diana Fletschner & Catherine Guirkinger & Steve Boucher, 2010. "Risk, Credit Constraints and Financial Efficiency in Peruvian Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 981-1002.
    22. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
    23. J. Bryant & A. Prohmmo, 2002. "Equal Contributions and Unequal Risks in a North-east Thai Village Funeral Society," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 63-75.
    24. Glenn W. Harrison & Eric Johnson & Melayne M. McInnes & E. Elisabet Rutstr�m, 2005. "Risk Aversion and Incentive Effects: Comment," American Economic Review, American Economic Association, vol. 95(3), pages 897-901, June.
    25. Booij, Adam S. & van Praag, Bernard M.S., 2009. "A simultaneous approach to the estimation of risk aversion and the subjective time discount rate," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 374-388, May.
    26. Klooster, Daniel, 2000. "Institutional Choice, Community, and Struggle: A Case Study of Forest Co-Management in Mexico," World Development, Elsevier, vol. 28(1), pages 1-20, January.
    27. Kerri Brick & Martine Visser & Justine Burns, 2011. "Risk Aversion: Experimental Evidence from South African Fishing Communities," Working Papers 227, Economic Research Southern Africa.
    28. Christy Spivey, 2010. "Desperation Or Desire? The Role Of Risk Aversion In Marriage," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 499-516, 04.
    29. Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Development Research Unit Working Paper Series archive-01, Monash University, Department of Economics.
    30. Teklewold, Hailemariam & Köhlin, Gunnar, 2010. "Risk Preferences as Determinants of Soil Conservation Decisions in Ethiopia," Discussion Papers dp-10-19-efd, Resources For the Future.
    31. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    32. Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
    33. H�kan Eggert & Ragnar Tveteras, 2004. "Stochastic Production and Heterogeneous Risk Preferences: Commercial Fishers' Gear Choices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 199-212.
    34. Ehmke, Mariah & Lusk, Jayson & Tyner, Wallace, 2010. "Multidimensional tests for economic behavior differences across cultures," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 37-45, January.
    35. Gong, Binglin & Yang, Chun-Lei, 2012. "Gender differences in risk attitudes: Field experiments on the matrilineal Mosuo and the patriarchal Yi," Journal of Economic Behavior & Organization, Elsevier, vol. 83(1), pages 59-65.
    36. 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, vol. 91(4), pages 1022-1037.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:12147. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    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.