RISK AVERSION REVISITED: A CLOSER LOOK AT MEANING AND MEASUREMENT

Michael D. Weiss

No 278074, 1986 Annual Meeting, July 27-30, Reno, Nevada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Contrary to popular belief, risk aversion is not always equivalent to concavity of the "utility of income" function. When this equivalence fails, Arrow-Pratt coefficients are not a meaningful measure of risk aversion. The pivotal issue is whether farmers' choices under risk are entirely determined by their choices under certainty.

Keywords: Agricultural and Food Policy; Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 15
Date: 1986-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea86:278074

DOI: 10.22004/ag.econ.278074

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