Hansson, Helena
- Department of Economics, Swedish University of Agricultural Sciences
Abstract
A behavioral framework and psychometric theory were used to develop a domain-specific scale to measure farmers' preferences (attitudes) for risk, when the expected benefits and perceived risks of each domain were explicitly modeled. Exploratory factor analyses based on a sample of 237 Swedish farmers highlighted three risk domains, which we termed 'Up-to-date and in deliberate control of production,' 'Carefulness and planning in general' and 'Progressive farming.' The results suggested that farmers are risk-averse in all domains. External validation of the domain-specific measurement scale suggested that it could significantly predict the observed five-year volatility in farm income. The suggested domain-specific measurement scale is of practical importance for the farmers themselves, the agribusiness, and for policy-makers.
Keywords
agriculture; behavior; psychometrics; risk preferences; Sweden
Published in
Journal of Risk Research
2012, volume: 15, number: 7, pages: 737-753
Publisher: ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
SLU Authors
Lagerkvist, Carl-Johan
- Department of Economics, Swedish University of Agricultural Sciences
- Department of Economics, Swedish University of Agricultural Sciences
UKÄ Subject classification
Economics and Business
Social Sciences
Agricultural Science
Publication identifier
- DOI: https://doi.org/10.1080/13669877.2012.657217
Permanent link to this page (URI)
https://res.slu.se/id/publ/45238