Stochastic transfers, risky investment and incomes: Evidence from an income guarantee program in Thailand

Arbeitspapier

From 2009 to 2011, the Thai government implemented an income guarantee program for rice, tapioca and maize farmers. Essentially, this program added a non-negative but stochastic component to the incomes of registered farmers. We evaluate the impact of the program on risk attitudes and investment behavior of small-scale rice farmers in relatively poor North-eastern Thailand. To control for self-selection into the scheme, we use propensity score matching. We find that that participation in the program significantly makes farmers less risk-averse, induces higher investments and boosts incomes. Medium-term effects are stronger than short-term effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hannover Economic Papers (HEP) ; No. 562

Classification and Topics

• Classification: Wirtschaft ; Household Production and Intrahousehold Allocation ; Business Taxes and Subsidies including sales and value-added (VAT) ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
• Subject: Income Support ; Farm Households ; Risk Attitude ; Investment ; Thailand

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wagener, Andreas ; Zenker, Juliane
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/121777
• Last update: 10.03.2025, 11:43 AM CET