Estimation of farmers' risk attitude: An econometric approach

Z. Bar-Shira*, R. E. Just, D. Zilberman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

89 Scopus citations

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.

Original languageEnglish
Pages (from-to)211-222
Number of pages12
JournalAgricultural Economics (United Kingdom)
Volume17
Issue number2-3
DOIs
StatePublished - Dec 1997

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