IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/303544.html

Comparing the Use of Risk influencing Production Inputs and Experimentally Measured Risk Attitude: Do the Decisions of Indonesian Small scale Rubber Farmers Match?

Author

Listed:
  • Moser, Stefan
  • Mußhoff, Oliver

Abstract

This article compares the use of risk-increasing and risk-reducing production inputs with the experimentally measured risk attitudes of farmers. For this purpose, a Just-Pope production function indicates production inputs’ influence on output risk, and a Holt-Laury lottery is used to measure farmers’ risk attitudes. We then test whether more risk averse farmers use more risk-reducing and less risk-increasing production inputs. To do so, a unique data set which includes 185 small-scale rubber farmers on the island of Sumatra, Indonesia, is used. The Just-Pope production function suggests that higher fertiliser usage has a risk-reducing effect, whereas higher herbicide usage has a risk-increasing effect. Comparing this with the outcome of a Holt-Laury lottery, we found that more risk averse farmers use more fertiliser (risk-reducing) and less herbicides (risk-increasing). The consistency of these results can be interpreted as reinforcing the external validity of measuring risk attitude with a Holt-Laury lottery.

Suggested Citation

  • Moser, Stefan & Mußhoff, Oliver, . "Comparing the Use of Risk influencing Production Inputs and Experimentally Measured Risk Attitude: Do the Decisions of Indonesian Small scale Rubber Farmers Match?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 66(2).
    • Handle: RePEc:ags:gjagec:303544
    DOI: 10.22004/ag.econ.303544
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/303544/files/4_Moser.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.303544?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Do, Huu-Luat & Dang Thuy, Truong, 2022. "Productivity response and production risk: A study of mangrove forest effects in aquaculture in the Mekong River Delta," Ecological Economics, Elsevier, vol. 194(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:303544. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.