Bougherara, Douadia and Nauges, Céline
(2018)
How laboratory experiments could help disentangle the influences of production risk and risk preferences on input decisions.
TSE Working Paper, n. 18-903, Toulouse
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Abstract
The purpose of this article is to further our understanding of input choices (such as pesticides or fertilisers) when producers face production risk that depends on a random shock and on the quantity of input used. Using laboratory experiments, we study the role of risk preferences and public policies (here, a lump-sum subsidy and insurance) on producers’ input decisions in two situations: i) a risk-decreasing input; and ii) a risk-increasing input. Our findings raise questions on the sensitivity of optimal input choices to risk preferences and the relevance of the expected utility model to describe farmers’ decisions.
Item Type: | Monograph (Working Paper) |
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Language: | English |
Date: | March 2018 |
Place of Publication: | Toulouse |
Uncontrolled Keywords: | laboratory experiment, input choice, production risk, risk preferences, subsidy, insurance |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Institution: | Université Toulouse 1 Capitole |
Site: | UT1 |
Date Deposited: | 24 Apr 2018 11:21 |
Last Modified: | 18 Apr 2024 11:59 |
OAI Identifier: | oai:tse-fr.eu:32566 |
URI: | https://publications.ut-capitole.fr/id/eprint/25886 |