Behavioral Responses of Farmers to Risk

David L. Watt and James Larson ()

No 270124, 1987 Annual Meeting, August 2-5, East Lansing, Michigan from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Optimal control and Monte Carlo simulation are used to measure farmers' risk attitudes. Discounting for the probablistic life expectancy of the firm. then comparing optimal capital structure to the observed. farmers in North Dakota internally rationed capital at a 19vel implying a time preference of money 6.39 percent below the rate expected of a risk neutral participant.

Keywords: Institutional and Behavioral Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 1987-08-02
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea87:270124

DOI: 10.22004/ag.econ.270124

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