Stochastic Transfers, Risky Investment and Incomes: Evidence from an Income Guarantee Program in Thailand
Andreas Wagener and
Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
From 2009 to 2011, the Thai government implemented an income guarantee program for rice, tapioca and maize farmers. Essentially, this program added a non-negative but stochastic component to the incomes of registered farmers. We evaluate the impact of the program on risk attitudes and investment behavior of small-scale rice farmers in relatively poor North-eastern Thailand. To control for self-selection into the scheme, we use propensity score matching. We find that that participation in the program significantly makes farmers less risk-averse, induces higher investments and boosts incomes. Medium-term effects are stronger than short-term effects.
Keywords: Income support; farm households; risk attitude; investment; Thailand (search for similar items in EconPapers)
JEL-codes: D13 H25 I38 Q12 (search for similar items in EconPapers)
Pages: 32 pages
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Persistent link: https://EconPapers.repec.org/RePEc:han:dpaper:dp-562
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