AN ANALYSIS OF THE RISK AVERSION OF FARM OPERATORS: AN ASSET PORTFOLIO APPROACH

The absolute and relative risk aversion characteristics of a large sample of farm operators were estimated from the observed portfolio responses to changes in wealth. Regression estimates suggest that farm operators display decreasing absolute risk aversion. Relative risk aversion varies by type of farm. However, the definition of risky assets has an important bearing on relative risk aversion characteristics. Non-wealth variables are also important in explaining the holding of risky assets by farm operators.


Issue Date:
1981-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32078
Published in:
Western Journal of Agricultural Economics, Volume 06, Number 1
Page range:
15-30
Total Pages:
16




 Record created 2017-04-01, last modified 2017-08-24

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)