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Impacts of risk aversion on whole‐farm management in Syria[Note 1. This article reports results from ongoing research which integrates ...]
Author(s) -
Pannell David J.,
Nordblom Thomas L.
Publication year - 1998
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00048
Subject(s) - risk aversion (psychology) , risk management , constant (computer programming) , econometrics , production (economics) , economics , expected utility hypothesis , computer science , microeconomics , financial economics , management , programming language
This article reports on a study of the impact of risk on farm management practices in northern Syria, focusing particularly on how these are affected by risk aversion and farm size. The study is based on production data from an eight‐year field trial and on prices from market surveys. A large linear programming model is built, representing the eight years as observations from a discrete probability distribution. Risk aversion is modelled by inclusion of a utility function with constant relative risk aversion, represented using the DEMP/UEP approach.