Comparing the use of risk-influencing production inputs and experimentally measured risk attitude: Do decisions of Indonesian small-scale rubber farmers match?
2015-05 | working paper. A publication with affiliation to the University of Göttingen.
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Comparing the use of risk-influencing production inputs and experimentally measured risk attitude: Do decisions of Indonesian small-scale rubber farmers match? (EFForTS Discussion Paper Series, 14)
Moser, S.& Mußhoff, O. (2015)
Göttingen: SFB 990, University of Göttingen; GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität Göttingen.
Documents & Media
Details
- Authors
- Moser, Stefan; Mußhoff, Oliver
- Abstract
- 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 producers’ 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.
- Issue Date
- May-2015
- Publisher
- SFB 990, University of Göttingen; GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität Göttingen
- Project
- SFB 990: Ökologische und sozioökonomische Funktionen tropischer Tieflandregenwald-Transformationssysteme (Sumatra, Indonesien)
SFB 990 | C | C06: Zum Verständnis des Zertifizierungs- und Wiederanpflanzungsverhaltens indonesischer Kleinbauern - Organization
- Johann-Friedrich-Blumenbach-Institut für Zoologie und Anthropologie
- Series
- EFForTS Discussion Paper Series
- Extent
- IV, 24
- Language
- English
- Subject(s)
- Holt-Laury lottery; Just-Pope production function; output risk; rubber, Indonesia; sfb990_discussionpaperseries