Economic Behavior under Uncertainty: A Joint Analysis of Risk Preferences and Technology.

Abstract

A method is developed to estimate jointly risk preferences and technology under general conditions. The approach is illustrated in an application to the analysis of U.S. corn-soybean acreage decisions over time. The results provide useful information on the nature of farmers' risk preferences and on the influence of price risk and production risk on acreage allocation and farmers' welfare. Copyright 1996 by MIT Press.