scholarly journals Shocks, Individual Risk Attitude, and Vulnerability to Poverty among Rural Households in Thailand and Vietnam

2015 ◽  
Vol 71 ◽  
pp. 54-78 ◽  
Author(s):  
Oliver Gloede ◽  
Lukas Menkhoff ◽  
Hermann Waibel
Keyword(s):  
Rural Households ◽  
Risk Attitude ◽  
Individual Risk ◽  
Vulnerability To Poverty

Rural Households’ Vulnerability to Poverty in Ethiopia

2017 ◽  
Vol 21 (6) ◽  
pp. 528-542 ◽  
Author(s):  
Birhan Sisay Demissie ◽  
Tesfahun Asmamaw Kasie
Keyword(s):  
Rural Households ◽  
Vulnerability To Poverty

scholarly journals Reward Value Coding Distinct From Risk Attitude-Related Uncertainty Coding in Human Reward Systems

2007 ◽  
Vol 97 (2) ◽  
pp. 1621-1632 ◽  
Author(s):  
Philippe N. Tobler ◽  
John P. O'Doherty ◽  
Raymond J. Dolan ◽  
Wolfram Schultz
Keyword(s):  
Risk Aversion ◽  
Risk Attitude ◽  
Mean Value ◽  
Expected Value ◽  
Individual Risk ◽  
Functional Magnetic Resonance ◽  
Coding Regions ◽  
Monetary Rewards ◽  
Expected Values ◽  
Value Coding

When deciding between different options, individuals are guided by the expected (mean) value of the different outcomes and by the associated degrees of uncertainty. We used functional magnetic resonance imaging to identify brain activations coding the key decision parameters of expected value (magnitude and probability) separately from uncertainty (statistical variance) of monetary rewards. Participants discriminated behaviorally between stimuli associated with different expected values and uncertainty. Stimuli associated with higher expected values elicited monotonically increasing activations in distinct regions of the striatum, irrespective of different combinations of magnitude and probability. Stimuli associated with higher uncertainty (variance) elicited increasing activations in the lateral orbitofrontal cortex. Uncertainty-related activations covaried with individual risk aversion in lateral orbitofrontal regions and risk-seeking in more medial areas. Furthermore, activations in expected value-coding regions in prefrontal cortex covaried differentially with uncertainty depending on risk attitudes of individual participants, suggesting that separate prefrontal regions are involved in risk aversion and seeking. These data demonstrate the distinct coding in key reward structures of the two basic and crucial decision parameters, expected value, and uncertainty.

German farmers’ acceptance of subsidized insurance associated with reduced direct payments

2019 ◽  
Vol 79 (3) ◽  
pp. 408-424 ◽  
Author(s):  
Johannes Möllmann ◽  
Marius Michels ◽  
Oliver Musshoff
Keyword(s):  
Public Support ◽  
Risk Attitude ◽  
Multinomial Logit Model ◽  
Negative Influence ◽  
Individual Risk ◽  
Farm Income ◽  
Complete Replacement ◽  
Content Type ◽  
Direct Payments ◽  
The Right

Purpose The outstanding reform of the Common Agriculture Policy allows for changes regarding its most criticized component, the direct payment scheme. The purpose of this paper is to investigate farmers’ acceptance of subsidized whole farm income insurance (WFI) and single-crop, multi-peril revenue insurance (RI) that are associated with a reduction of direct payments. Design/methodology/approach By applying a generalized multinomial logit model on data of a discrete choice experiment, German farmers’ preferences, expressed as their willingness to pay (WTP), for WFI and RI are revealed. Findings The results show a positive WTP for WFI and RI. The average farmer has a higher WTP for WFI than for RI. By increasing the coverage level, the negative influence of a reduction of direct payments on WTP for insurance can be compensated. Individual risk attitude and assessed importance of direct payments for the farm business show a statistically significant influence on the WTP. Practical implications The results suggest that, even if direct payments were abolished in order to subsidize WFI or RI, German farmers’ WTP for both insurance products would remain positive. However, to finally assess whether subsidizing insurance is the right means of providing public support, it is necessary to assess whether farmers’ WTP meets the costs for such an insurance scheme. Originality/value To the authors’ knowledge, this is the first study investigating German farmers’ WTP for WFI and RI using an experimental approach by explicitly considering the partial to complete replacement of direct payments by subsidized insurance.

scholarly journals Credit Risk Contagion Based on Asymmetric Information Association

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Shanshan Jiang ◽  
Hong Fan ◽  
Min Xia
Keyword(s):  
Asymmetric Information ◽  
Credit Risk ◽  
Financial Market ◽  
Risk Attitude ◽  
Individual Risk ◽  
Complex Network Theory ◽  
Structure Information ◽  
The Individual ◽  
Credit Risk Contagion ◽  
Information Association

The study of the contagion law of credit risk is very important for financial market supervision. The existing credit risk contagion models based on complex network theory assume that the information between individuals in the network is symmetrical and analyze the proportion of the individuals infected by the credit risk from a macro perspective. However, how individuals are infected from a microscopic perspective is not clear, besides the level of the infection of the individuals is characterized by only two states: completely infected or not infected, which is not realistic. In this paper, a credit risk contagion model based on asymmetric information association is proposed. The model can effectively describe the correlation among individuals with credit risk. The model can analyze how the risk individuals are infected in the network and can effectively reflect the risk contagion degree of the individual. This paper further analyzes the influence of network structure, information association, individual risk attitude, financial market supervision intensity, and individual risk resisting ability on individual risk contagion. The correctness of the model is verified by theoretical deduction and numerical simulation.

Digital financial inclusion and vulnerability to poverty: evidence from Chinese rural households

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuhua Wang ◽  
Yang Fu
Keyword(s):  
Poverty Reduction ◽  
Large Scale ◽  
Labour Force ◽  
Rural China ◽  
Rural Households ◽  
Household Survey ◽  
Financial Inclusion ◽  
Mediation Effect ◽  
Content Type ◽  
Vulnerability To Poverty

PurposeDigital finance has the transformative power to realise financial inclusion. However, evidence on the relationship between digital finance and poverty reduction remains limited. This study examines the mitigating effects of digital financial inclusion (DFI) on vulnerability to poverty in rural China, explores potential mechanisms at the micro-level, and investigates the external conditions for DFI to validate these effects.Design/methodology/approachRural household data from the China Labour Force Dynamics Survey and the regional DFI index compiled by Peking University are used. The probit and mediation effect models are employed to assess the impacts of the DFI on vulnerability to poverty and explore its mechanisms, with an appropriate instrumental variable to mitigate potential endogeneity.FindingsDFI can mitigate vulnerability to poverty in Chinese rural households. Specifically, both sub-indices – coverage breadth and depth of use – have a significant effect. Further analyses based on the mediation model show that improving agricultural productivity, stimulating entrepreneurial activities and promoting non-agricultural employment are the core mechanisms for alleviating poverty vulnerability. Heterogeneity analysis shows that DFI is pro-poor and benefits those who lack economic opportunities. Moreover, adequate endowment in rural households, such as production and human capital, is an external condition for digital finance to mitigate vulnerability to poverty.Originality/valueThis study is among the first to examine the vulnerability-mitigation effects from the perspective of digital finance development, relying on data from a large-scale, nationwide household survey and the regional DFI index. It also checks for the mechanisms and heterogeneity of the effects, which prove the effects can help balance efficiency and equity.

When Are Designers Willing to Take Risks? How Concept Creativity and Prototype Fidelity Influence Perceived Risk

2018 ◽  
Author(s):  
Elizabeth M. Starkey ◽  
Jessica Menold ◽  
Scarlett R. Miller
Keyword(s):  
Perceived Risk ◽  
Engineering Students ◽  
Risk Attitude ◽  
Individual Risk ◽  
Concept Selection ◽  
The Right ◽  
The Impact ◽  
Different Levels ◽  
Selection Of

Building prototypes is an important part of the concept selection phase of the design process, where fuzzy ideas get represented to support communication and decision making. However, previous studies have shown that prototypes generate different levels of user feedback based on their fidelity and aesthetics. Furthermore, prior research on concept selection has shown that individual risk attitude effects how individuals select ideas, as creative ideas are perceived to be riskier in comparison to less creative ideas. While the role of risk has been investigated in concept selection, there is lack of research on how risk is related to the selection of prototypes at various levels of fidelity. Thus, the purpose of this study was to investigate the impact of prototype fidelity, concept creativity, and risk aversion, on perceived riskiness and concept selection through a between-subjects study with 72 engineering students. The results revealed that there was a “goldilocks” effect in which students choose concepts with “just the right amount” of novelty, not too much and not too little, as long as quality was adequate. In addition, the prototype fidelity of a concept had an interaction with uniqueness, indicating that unique concepts are more likely to be perceived as less risky if presented at higher levels of fidelity.

scholarly journals Effects of Individual Risk Attitude, Safety Climate, and Affective Commitment on Safety Compliance

2015 ◽  
Vol 5 (1) ◽  
pp. 196 ◽  
Author(s):  
Ivan Soraperra ◽  
Lucia Savadori ◽  
Luigi Mittone ◽  
Franco Fraccaroli
Keyword(s):  
Affective Commitment ◽  
Safety Climate ◽  
Risk Attitude ◽  
Individual Risk ◽  
Safety Compliance

Irrigation Advisory Services: Farmers preferences and willingness to pay for innovation

2021 ◽  
pp. 003072702110028
Author(s):  
Filiberto Altobelli ◽  
Anna Dalla Marta ◽  
Marius Heinen ◽  
Claire Jacobs ◽  
Elisa Giampietri ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Risk Attitude ◽  
Individual Risk ◽  
Scheme Design ◽  
Weather Forecasts ◽  
Advisory Services ◽  
Irrigation Water Use ◽  
Specific Scheme ◽  
Original Survey ◽  
The Individual

Irrigation Advisory Services (IAS) are powerful management instruments aiming to achieve the best efficiency in irrigation water use. So far the literature on farmers’ preferences for a specific scheme design of IAS’ characteristics and the related willingness to pay (WTP) is scant. This study provides evidence on farmers’ preference towards six attributes related to the IAS configuration by using a hypothetical choice experiment. Data were collected from an original survey among 108 farmers from Spain, The Netherlands, Italy, Poland and South Africa. Moreover, we investigated the interplay between these preferences and the individual risk attitude (elicited through a lottery task) as a novel contribution. On average, the results suggest a clear farmers’ preference, especially for receiving weather forecasts from the service and for the feature related to water data recording; as the opposite, on average, crop water requirement seems irrelevant. Finally, we found that farmers’ WTP for the different IAS services varies across countries and, in some cases, also according to the individual risk attitude.

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