Pesticide Use and Risk Aversion in the French Wine Sector

2018 ◽  
Vol 13 (4) ◽  
pp. 451-460 ◽  
Author(s):  
Joël Aka ◽  
Adeline Alonso Ugaglia ◽  
Jean-Marie Lescot
Keyword(s):  
Risk Aversion ◽  
Maximum Yield ◽  
The Other ◽  
Risk Attitudes ◽  
Pesticide Use ◽  
Risk Averse ◽  
Network Database ◽  
Farm Accountancy Data Network ◽  
Wine Sector ◽  
Jel Classifications

AbstractThis paper studies the risk attitudes of winegrowers in France. In French viticulture, most of the production is done under an appellation regime that constrains maximum authorized yields. We consider a trans-log cost function under the constraint of this maximum yield and estimate winegrowers' attitudes to risk. Our estimates are based on the European Farm Accountancy Data Network database (2005–2014) and data from the French National Institute of Origin and Quality. We find that winegrowers are risk averse. For the majority of winegrowers, risk aversion is declining with expected profit. In the Champagne region, however, where expected profits are far higher than in the other regions, we observe the reverse relation: winegrowers become more risk averse as expected profits rise. (JEL Classifications: C13, C33, O33, Q16).

Do Migrants Think Differently? Evidence from Eastern European and Post-Soviet States

2018 ◽  
Vol 53 (3) ◽  
pp. 831-868 ◽  
Author(s):  
Ruxanda Berlinschi ◽  
Ani Harutyunyan
Keyword(s):  
Risk Aversion ◽  
International Migration ◽  
The Other ◽  
Eastern European ◽  
Risk Averse ◽  
Economic Liberalism ◽  
Self Selection ◽  
Using Data ◽  
Politically Active ◽  
Beliefs And Attitudes

This research investigates migrant self-selection on values, beliefs, and attitudes using data from Eastern European and former Soviet countries. We find that individuals who intend to emigrate are more politically active, more critical of governance and institutions, more tolerant toward other cultures, less tolerant of cheating, more optimistic, and less risk averse. With the exception of risk aversion, all selection patterns are heterogeneous across regions of origin. On the other hand, no self-selection pattern is detected on education, willingness to pay for public goods, and economic liberalism. These findings provide new insights into the determinants of international migration and reveal some of its less known consequences, such as a possible reduction of domestic pressure for political improvements in post-Soviet states due to politically active citizens’ higher propensity to emigrate.

The Determinants of Risk Aversion: The Role of Intergenerational Transmission

2013 ◽  
Vol 14 (2) ◽  
pp. 214-234 ◽  
Author(s):  
Maria De Paola
Keyword(s):  
Risk Aversion ◽  
Intergenerational Transmission ◽  
Individual Characteristics ◽  
Risk Attitudes ◽  
Risk Averse ◽  
The Public ◽  
Measures Of Risk ◽  
High Ability Students ◽  
The Relationship

AbstractThis article studies the relationship between risk attitudes and individual characteristics focusing on the intergenerational transmission of risk preferences. We use a dataset of a sample of Italyn students which allows us to build different measures of risk aversion based, respectively, on a survey asking students about their willingness to invest in a risky asset and about their preferences for job security and on the results of an entry test using explicit penalty points in the case of incorrect answers. In line with the findings highlighted by the existing literature, we find that women are more risk averse than men, more patient subjects are more risk averse, while high-ability students are less risk averse. As far as intergenerational transmission of preferences is concerned, it emerges that students whose fathers are entrepreneurs have a higher propensity to take risks, while students whose fathers are employed in the public sector are more risk averse. Only fathers matter with regards to their children’s risk attitudes. These results are robust to different measures of risk aversion and to different specifications of our model.

scholarly journals Crowded out: Heterogeneity in risk attitudes among poor households in the US

2021 ◽  
Author(s):  
Arianna Galliera ◽  
E. Elisabet Rutström
Keyword(s):  
Risk Aversion ◽  
Field Experiments ◽  
Household Head ◽  
Negative Relationship ◽  
Household Size ◽  
Household Composition ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Data Set ◽  
Poor Households

AbstractNot much is known about the heterogeneity of risk attitudes among poor households in rich countries. This paper provides estimates from a unique data set collected among the urban poor in Atlanta, Georgia. The data set includes lab-in-the-field experiments on the relationship between risk attitudes and several household characteristics. Apart from looking at income, wealth, and education, we are particularly interested in household composition as it captures the number and kind of people who are dependant on the income of the household head. Heads of households who are less risk averse may be willing to take on the extra risk from smaller resource margins resulting from additional dependants, implying a negative relationship between household size and risk aversion. However, if the size of the household is a result of exogenous forces some heads of households may become more risk averse with more dependants. Household size can also reflect a risk management choice that involves adding non-dependant members who can provide resources and risk sharing. However, this possibility is limited to homes that are not already too crowded. We find that household size correlates positively with the risk aversion of the head, but with a large proportion of children the correlation is strongly dampened. However, this negative effect of children is conditional on the home not already being crowded. These heterogeneous findings have implications for the design of new insurance, savings, and credit programs where risk attitudes are important to the decisions to adopt.

scholarly journals Risk and Site Factors Affecting Potential Nitrogen Delivery in the Virginia Coastal Plain

2001 ◽  
Vol 33 (1) ◽  
pp. 173-188 ◽  
Author(s):  
Wei Peng ◽  
Darrell J. Bosch
Keyword(s):  
Surface Water ◽  
Risk Aversion ◽  
Coastal Plain ◽  
Stochastic Dominance ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Site Factors ◽  
Factors Affecting ◽  
Fertilizer Recommendations ◽  
Different Levels

AbstractThe effects of cropland slope, distance to surface water, farmers' risk attitudes, and farmers' nitrogen (N) fertilizer applications on potential N delivery to streams and costs of reducing N delivery were evaluated for a representative Virginia peanut-cotton farm. Target MOTAD and generalized stochastic dominance were used to select preferred plans for different levels of risk aversion. Costs of reducing N delivery were lower on farms where fields were located close to surface water, where N was overapplied relative to extension fertilizer recommendations, and where the operator was risk averse. Cropland slope had less effect on cost of reducing N delivery relative to other factors.

scholarly journals Determinants of Wineries’ Decisions to Seek VQA Certification in the Canadian Wine Industry

2016 ◽  
Vol 12 (1) ◽  
pp. 16-36 ◽  
Author(s):  
Albert I. Ugochukwu ◽  
Jill E. Hobbs ◽  
Joel F. Bruneau
Keyword(s):  
Quality Assurance ◽  
Probit Model ◽  
The Other ◽  
Wine Industry ◽  
Detailed Data ◽  
Specification Test ◽  
Data Set ◽  
Important Development ◽  
Wine Sector ◽  
Jel Classifications

AbstractThe establishment of quality assurance systems is an important development in the wine sector, particularly so for new and emerging wine regions. Focusing on the Canadian wine industry, this article examines the determinants of a winery's decision to adopt Vintners Quality Alliance (VQA) certification for wines. The analysis also examines whether wineries seek VQA certification for higher-priced wines or whether VQA certification leads to higher wine prices. To examine the certification decision, a probit model is applied to a detailed data set of Canadian wines sold in Ontario over the period 2007–2012. Wines from wineries that supply large volumes of wines (more than 1,000 cases) are more likely to have VQA certification, as well as ice wines and wines from specific regions. A Hausman specification test for endogeneity suggests that VQA certification leads to higher wine prices and not the other way around. (JEL Classifications: D22, L15, L66, Q13)

scholarly journals Why Buy Accident Forgiveness Policies? An Experiment

2018 ◽  
Vol 10 (8) ◽  
pp. 1
Author(s):  
Fan Liu
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Time Preferences ◽  
Purchase Decision ◽  
Risk Attitudes ◽  
Purchase Decisions ◽  
Risk Averse ◽  
Product Price ◽  
High Degree

Risk and time preferences influence the insurance purchase decisions under uncertainty. Accident forgiveness, often considered as “premium insurance,” protects policyholders against a premium increase in the next period if an at-fault accident occurs. In this paper, by conducting a unique experiment in the controlled laboratory conditions, we examine the role of risk and time preferences in accident forgiveness purchase decisions. We find that individual discount rates and product price significantly affect premium insurance purchase decision. Interestingly, we also find evidence that less risk averse policyholders in general behave more like risk neutral when making insurance decision. Risk attitudes affect insurance decision-making only among those who have relatively high degree of risk aversion.

Responsibility Centers, Decision Rights, and Synergies

2019 ◽  
Vol 95 (2) ◽  
pp. 1-29 ◽  
Author(s):  
Tim Baldenius ◽  
Beatrice Michaeli
Keyword(s):  
Optimal Allocation ◽  
Incentive Contracts ◽  
The Other ◽  
Risk Averse ◽  
Business Unit ◽  
Decision Rights ◽  
Specific Investments ◽  
Lumpy Investments ◽  
Allocation Of Decision Rights ◽  
Jel Classifications

ABSTRACT We consider the optimal allocation of decision rights over noncontractible specific investments. Risk-averse business unit managers each engage in general (stand-alone) operations and invest in joint projects that benefit their own and other divisions. Which of the managers should have the authority to choose these investments? With scalable investments, we show that decision rights should be bundled in the hands of the manager facing the more volatile environment. With discrete (lumpy) investments, on the other hand, decision rights should be split between the managers, provided they face comparable levels of uncertainty in their general operations. Splitting decision rights better leverages the inherent investment complementarity, counter to conventional wisdom. Our model generates empirical predictions for the equilibrium association of organizational structure and managers' incentive contracts: bundling of decision rights results in pay-performance sensitivity (PPS) divergence across divisions; splitting them results in PPS convergence. JEL Classifications: M41; D23; D86.

Eliciting Risk Preferences and Elasticity of Substitution

2020 ◽  
Vol 17 (4) ◽  
pp. 314-329
Author(s):  
Johan Burgaard ◽  
Mogens Steffensen
Keyword(s):  
Risk Aversion ◽  
Discount Rate ◽  
Predictive Power ◽  
Recursive Utility ◽  
Risk Averse ◽  
Indirect Utility ◽  
Consistent Estimation ◽  
On Certainty ◽  
Certainty Equivalents ◽  
Elasticity Of Intertemporal Substitution

Risk aversion and elasticity of intertemporal substitution (EIS) are separated via the celebrated recursive utility building on certainty equivalents of indirect utility. Based on an alternative separation method, we formulate a questionnaire for simultaneous and consistent estimation of risk aversion, subjective discount rate, and EIS. From a representative group of 1,153 respondents, we estimate parameters for these preferences and their variability within the population. Risk aversion and the subjective discount rate are found to be in the orders of 2 and 0, respectively, not diverging far away from results from other studies. Our estimate of EIS in the order of 10 is larger than often reported. Background variables like age and income have little predictive power for the three estimates. Only gender has a significant influence on risk aversion in the usually perceived direction that females are more risk-averse than males. Using individual estimates of preference parameters, we find covariance between preferences toward risk and EIS. We present the background reasoning on objectives, the questionnaire, a statistical analysis of the results, and economic interpretations of these, including relations to the literature.

The Effects of Online Assignments and Weekly Deadlines on Student Outcomes in a Macroeconomics Course

2020 ◽  
pp. 056943452096825
Author(s):  
Laurie A. Miller ◽  
James R. Schmidt
Keyword(s):  
Student Retention ◽  
Adaptive Learning ◽  
Student Outcomes ◽  
Knowledge Retention ◽  
The Other ◽  
Student Knowledge ◽  
Final Exam ◽  
Online Assignments ◽  
Positive Effect ◽  
Jel Classifications

This study examined how weekly, externally set deadlines affected the completion of adaptive learning assignments and student outcomes in an introductory macroeconomics course. We imposed different deadline schemes for the same adaptive learning assignments in two sections of the course. One section was given flexible deadlines and the other section was given rigid weekly deadlines. We found that weekly deadlines did not affect assignment completions or total points earned on unit exams. We investigated how the adaptive learning assignments affected student retention of material. A measure of staying on pace in the course provided a positive effect on the comprehensive final exam for students with weekly deadlines. The weekly deadlines may not have influenced assignment completions but consistent engagement with the flow of topics through the course increased student knowledge retention. Regardless of deadline type, completions of adaptive learning assignments positively affected outcomes on the unit exams and final exam. JEL Classifications: A20, A22

scholarly journals Market-based instruments for risk-averse farmers: rubber agroforest conservation in Jambi Province, Indonesia

2016 ◽  
Vol 22 (2) ◽  
pp. 133-155 ◽  
Author(s):  
Utkur Djanibekov ◽  
Grace B. Villamor
Keyword(s):  
Income Inequality ◽  
Risk Aversion ◽  
Real Options ◽  
Risk Averse ◽  
Variance Model ◽  
Income Uncertainty ◽  
Real Options Approach ◽  
Pigovian Taxes ◽  
Rubber Agroforest ◽  
Mean Variance

AbstractThis paper investigates the effectiveness of different market-based instruments (MBIs), such as eco-certification premiums, carbon payments, Pigovian taxes and their combination, to address the conversion of agroforests to monoculture systems and subsequent effects on incomes of risk-averse farmers under income uncertainty in Indonesia. For these, the authors develop a farm-level dynamic mean-variance model combined with a real options approach. Findings show that the conservation of agroforest is responsive to the risk-aversion level of farmers: the greater the level of risk aversion, the greater is the conserved area of agroforest. However, for all risk-averse farmers, additional incentives in the form of MBIs are still needed to prevent conversion of agroforest over the years, and only the combination of MBIs can achieve this target. Implementing fixed MBIs also contributes to stabilizing farmers’ incomes and reducing income risks. Consequently, the combined MBIs increase incomes and reduce income inequality between hardly and extremely risk-averse farmers.

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