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

Koundouri, Phoebe, Laukkanen, Marita, Myyra, Sami and Nauges, Celine (2009) The effects of EU agricultural policy changes on farmers' risk attitudes. European Review of Agricultural Economics, 36 1: 53-77. doi:10.1093/erae/jbp003


Author Koundouri, Phoebe
Laukkanen, Marita
Myyra, Sami
Nauges, Celine
Title The effects of EU agricultural policy changes on farmers' risk attitudes
Journal name European Review of Agricultural Economics   Check publisher's open access policy
ISSN 0165-1587
1464-3618
Publication date 2009-03
Sub-type Article (original research)
DOI 10.1093/erae/jbp003
Volume 36
Issue 1
Start page 53
End page 77
Total pages 25
Place of publication Oxford, United Kingdom
Publisher Oxford University Press
Language eng
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.
Keyword Common Agricultural Policy
Risk preferences
Decoupled payments
Finland
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
 
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Created: Thu, 29 Sep 2011, 15:31:18 EST by Alys Hohnen on behalf of School of Economics