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Risk Attitudes Measured by the Interval Approach: A Case Study of Kansas Farmers
Author(s) -
Thomas Arthur C.
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242266
Subject(s) - stochastic dominance , risk aversion (psychology) , consistency (knowledge bases) , time consistency , dominance (genetics) , actuarial science , order (exchange) , economics , econometrics , expected utility hypothesis , mathematics , financial economics , finance , biochemistry , chemistry , geometry , gene
Risk attitudes of farmers are of major importance to agricultural economists. This study utilizes a questionnaire designed to determine risk aversion levels. Risk aversion intervals are elicited using generalized stochastic dominance for thirty northeastern Kansas farmers in order to investigate the relationship between age and level of risk aversion, the consistency of risk aversion over five income ranges, and the accuracy of farmers self‐assessments of risk aversion. Results indicate no statistically significant difference between the risk aversion levels of younger and older farmers. The majority of farmers expressed fairly consistent risk attitudes over different income ranges. Finally, farmers show some ability to assess their own risk attitudes.