Arbeitspapier
Comparing the use of risk-influencing production inputs and experimentally measured risk attitude: Do decisions of Indonesian small-scale rubber farmers match?
This article compares the use of risk-increasing and risk-reducing production inputs with the experimentally measured risk attitudes of farmers. For this purpose, the Just-Pope production function indicates production inputs' influence on output risk and a Holt-Laury lottery is used to measure the producer´s risk attitude. We test whether more risk averse farmers use more risk-reducing and less risk-increasing production inputs. Therefore, we apply a unique data set which includes 185 small-scale farmers which are producing rubber on 260 plots on the island of Sumatra, Indonesia. The Just-Pope production function indicates that fertiliser usage has a risk-reducing effect, whereas herbicide usage and plot size have risk-increasing effects. For labour and plantation age, the influence on output risk is ambiguous. By including the outcome of a Holt-Laury lottery into the analysis, we found the expected result that more risk averse farmers use more (risk-reducing) fertiliser and less (risk-increasing) herbicides. These consistent results provide an example for the external validity of measuring risk attitude with the Holt-Laury lottery.
- Language
-
Englisch
- Bibliographic citation
-
Series: EFForTS Discussion Paper Series ; No. 14
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Field Experiments
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Subject
-
Holt-Laury lottery
Just-Pope production function
output risk
rubber
Indonesia
- Event
-
Geistige Schöpfung
- (who)
-
Moser, Stefan
Mußhoff, Oliver
- Event
-
Veröffentlichung
- (who)
-
GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität
- (where)
-
Göttingen
- (when)
-
2015
- Handle
- URN
-
urn:nbn:de:gbv:7-webdoc-3957-8
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Moser, Stefan
- Mußhoff, Oliver
- GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität
Time of origin
- 2015
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