Assessing the Impact of Fresh Vegetable Growers’ Risk Aversion Levels and Risk Preferences on the Probability of Adopting Marketing Contracts: A Bayesian Approach

One of the most frequently cited theoretical statements to explain the use of contractual arrangements is that risk drives the choice of contracts. However, there is limited empirical support for this argument. A Bayesian ordered probit formulation is used in this study to determine the importance of fresh vegetable producers’ and farm operation characteristics on the probability of adopting marketing contracts. The findings of the study indicate that younger farmers, with larger farm size and with the ability to expand their operations are more likely to participate in marketing contract agreements. On the other hand, the results do not support the risk shifting hypothesis.


Editor(s):
IFAMR, IFAMA
Issue Date:
Feb 01 2016
Publication Type:
Journal Article
DOI and Other Identifiers:
(ISSN #: 1559-2448) (Other)
PURL Identifier:
http://purl.umn.edu/230832
Published in:
International Food and Agribusiness Management Review, Volume 19, Issue 1
Page range:
25-42
Total Pages:
18
JEL Codes:
Q13; Q12
Note:
The IFAMR is published quarterly by the International Food and Agribusiness Management Association (www.ifama.org)
Series Statement:
Volume 19
Issue 1




 Record created 2017-04-01, last modified 2017-08-29

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