The effects of EU agricultural policy changes on farmers' risk attitudes

Phoebe Koundouri (), Marita Laukkanen, Sami Myyrä and Celine Nauges

Post-Print from HAL

Abstract: This analysis utilises a model of production under risk estimated on Finnish farm-level data to measure farmers' risk attitudes in a changing policy environment. We find evidence of heterogeneous risk preferences among farmers, as well as notable changes over time in farmers' degree of risk aversion. This result is due to the increase in the non-random part of farm income generated by the policy change after Finland's European Union accession. The analysis confirms the assertion that agricultural policies that are decoupled from production do affect input use and crop mix through their effect on farmers' risk attitudes.

Keywords: COMMON AGRICULTURAL POLICY; RISK PREFERENCES; DECOUPLED PAYMENTS; FINLAND; ARABLE CROPS; UNCERTAINTY; PREFERENCES; PRODUCTIVITY; PAYMENTS; SECTOR; EUROPEAN-UNION; MULTIOUTPUT TECHNOLOGIES; PRICE; MANAGEMENT; POLITIQUE AGRICOLE COMMUNE (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Published in European Review of Agricultural Economics, 2009, 36 (1), pp.53-77. ⟨10.1093/erae/jbp003⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The effects of EU agricultural policy changes on farmers' risk attitudes (2009)
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:hal:journl:hal-02666408

DOI: 10.1093/erae/jbp003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().