Risk preferences under heterogeneous environmental risk

Arbeitspapier

We study risk preferences and their determinants for commercial cattle farmers in Namibia who are subject to high and heterogeneous precipitation risk, using data from questionnaire and field experiments, simulated data for on-farm precipitation risk and data on famers' previous place of residence. We find that the relationship between risk preferences and precipitation risk is contingent on early-life experience with this risk. We also find that adult farmers self-select themselves onto farms according to their risk preferences. Results are not confounded by background risks or liquidity constraint.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper Series in Economics ; No. 208

Classification and Topics

• Classification: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets ; Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
• Subject: risk preferences ; environmental risk ; experimental elicitation ; endogenous preferences ; self-selection ; field experiment ; Weidewirtschaft ; Rinderhaltung ; Landwirte ; Risikopräferenz ; Bodenbelastung ; Namibia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Olbrich, Roland ; Quaas, Martin F. ; Haensler, Andreas ; Baumgärtner, Stefan
• Event: Veröffentlichung
• (who): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (where): Lüneburg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/57150
• Last update: 10.03.2025, 11:43 AM CET