ALL libraries (COBIB.SI union bibliographic/catalogue database)
  • Indirect estimation of farm's risk aversion : mathematical programming approach
    Žgajnar, Jaka, 1982- ; Kavčič, Stane, 1966-
    In the paper we present an approach how farmer's risk aversion could be estimated indirectly. This is particularly beneficial if one analyses hypothetical farms with absence of decision markers, as ... for example in the case of representative farms that are usually used for systematic studying. Applied approach, is based on mathematical programming methods. The main idea is to use current farm practice as a baseline and to calculate missing data with partial optimization process. Non-interactive procedure based on expectedvalue-variance framework and quadratic programming paradigm minimising variance has been applied to locate current farms' plans in expected value- variance space and to estimate their risk aversion. To demonstrate applicability of the approach, three representative dairy farms were analysed. Obtained results indicate high relative risk aversion in all three cases. More intensive dairy farm in flat area is less risk averase as smaller, still intensive farm with similar production conditions or farm with less intensive farming typical for hilly area. The study illustrates also discrepancy between optimal solutions considering or neglecting farmers risk aversion.
    Source: Bulgarian journal of agricultural science. - ISSN 1310-0351 (Vol. 17, no. 2, 2011, str. 218-231)
    Type of material - article, component part
    Publish date - 2011
    Language - english
    COBISS.SI-ID - 2866056

Shelf entry