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Assessing Peasant Farmers’ Risk Attitudes And Factors That Influence Decisions On Risky Alternatives: A Case Study In The Border Region Of South Africa

Author

Listed:
  • Bester, B.J.
  • Belete, Abenet
  • Kelembe, S.G.

Abstract

The experimental method of measuring risk attitudes, using four hypothetical gambling situations, was used to elicit information from peasant farmers in the Border region of South Africa. The main intention was to examine peasant farmers’ attitudes towards risk and the social and economic factors that influence these. Based on the results, peasant farmers in the study area are risk averse. Factors such as level of formal education and annual household income were found to have significant influences on peasant farmer's responses towards making decisions on risky alternatives.

Suggested Citation

  • Bester, B.J. & Belete, Abenet & Kelembe, S.G., 1998. "Assessing Peasant Farmers’ Risk Attitudes And Factors That Influence Decisions On Risky Alternatives: A Case Study In The Border Region Of South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(3), pages 1-15, September.
    • Handle: RePEc:ags:agreko:54877
    DOI: 10.22004/ag.econ.54877
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    File URL: https://ageconsearch.umn.edu/record/54877/files/04%20Belete_%20Bester%20and%20Kelembe%20-%20September%201998.pdf
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    References listed on IDEAS

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    1. Eidman, Vernon R., 1989. "Quantifying And Managing Risk In Agriculture," Staff Papers 13646, University of Minnesota, Department of Applied Economics.
    2. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
    3. Grisley, William & Kellog, Earl, 1987. "Risk-taking preferences of farmers in northern Thailand: Measurements and implications," Agricultural Economics, Blackwell, vol. 1(2), pages 127-142, June.
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    Cited by:

    1. Bird, Kate & Shepherd, Andrew, 2003. "Livelihoods and Chronic Poverty in Semi-Arid Zimbabwe," World Development, Elsevier, vol. 31(3), pages 591-610, March.

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    Keywords

    Farm Management; Risk and Uncertainty;

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