In modelling farm systems it is widely accepted that risk plays a central role. Furthermore, farm... more In modelling farm systems it is widely accepted that risk plays a central role. Furthermore, farmers’ risk aversion determines their decisions in both the short and the long run. This paper presents a methodology based on multiple criteria mathematical programming to obtain relative and absolute risk aversion coefficients. We rely on multiattribute utility theory to elicit a separable additive multiattribute utility function and estimate the risk aversion coefficients, and apply this methodology to an irrigated area of Northern Spain. The results show a wide variety of attitudes to risk among farmers, who usually exhibit decreasing absolute risk aversion and constant relative risk aversion.
After the decoupling of the subsidies in cereals, oilseeds and protein crops (COPs) and cotton, a... more After the decoupling of the subsidies in cereals, oilseeds and protein crops (COPs) and cotton, as well as the EU sugar price reduction, the Bajo del Guadalquivir area (Southern Spain) is particularly affected due to the importance of cotton and sugar beet crops. Furthermore, the recent proposal of the Commission (Brussels, 24/01/2007) to open the possibility of sowing of fruits
In modelling farm systems it is widely accepted that risk plays a central role. Furthermore, farm... more In modelling farm systems it is widely accepted that risk plays a central role. Furthermore, farmers’ risk aversion determines their decisions in both the short and the long run. This paper presents a methodology based on multiple criteria mathematical programming to obtain relative and absolute risk aversion coefficients. We rely on multiattribute utility theory to elicit a separable additive multiattribute utility function and estimate the risk aversion coefficients, and apply this methodology to an irrigated area of Northern Spain. The results show a wide variety of attitudes to risk among farmers, who usually exhibit decreasing absolute risk aversion and constant relative risk aversion.
After the decoupling of the subsidies in cereals, oilseeds and protein crops (COPs) and cotton, a... more After the decoupling of the subsidies in cereals, oilseeds and protein crops (COPs) and cotton, as well as the EU sugar price reduction, the Bajo del Guadalquivir area (Southern Spain) is particularly affected due to the importance of cotton and sugar beet crops. Furthermore, the recent proposal of the Commission (Brussels, 24/01/2007) to open the possibility of sowing of fruits
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