Title: An Empirical Study on Effects of Risk Avoiding Behavior on Agricultural Production and Management Decision
Abstract: The households in rural areas try not only to increase income,but also stabilize income.Based on survey data collected from 1 063 farm households in Sichuan province,this paper tests how dose ex-ante income-smoothing mechanisms affect farmers' behavior and welfare under the impact of the income risks.The results indicate that without formal mechanisms to cope with risk,farmers will choose some informal mechanisms to deal with risk.Owing to the lack of ex-post risk prevention mechanism,to protect themselves from risks,the farmers have to cope with risk depending on ex-ante income-smoothing mechanisms.The conservative act of production is the main way for farmers to cope with risks,but it has negative impacts on farmers' welfare and productivity.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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