Joint Estimation of Risk Preferences and Technology: Flexible Utility or Futility?

Sergio Lence ()

American Journal of Agricultural Economics, 2007, vol. 91, issue 3, 581-598

Abstract: A thought experiment is designed to investigate whether the structure of risk aversion (i.e., the changes in absolute or relative risk aversion associated with changes in wealth) can be estimated with reasonable precision from agricultural production data. Findings strongly suggest that typical production data are unlikely to allow identification of the structure of risk aversion. A flexible-utility parameterization is found to slightly worsen technology parameter estimates. Results also indicate that even under a restricted-utility specification, utility parameter estimates are biased. Further, their quality is much worse when shocks are not large or samples are small. Copyright 2007, Oxford University Press.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1467-8276.2009.01274.x (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Joint Estimation of Risk Preferences and Technology: Flexible Utility or Futility? (2009)
Working Paper: Joint Estimation of Risk Preferences and Technology: Flexible Utility of Futility? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:91:y:2007:i:3:p:581-598

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().