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The effects of EU agricultural policy changes on farmers' risk attitudes

Author

Listed:
  • Phoebe Koundouri

    (AUEB - Athens University of Economics and Business)

  • Marita Laukkanen

    (Agrifood Research Finland)

  • Sami Myyrä

    (Agrifood Research Finland)

  • Celine Nauges

    (LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

This analysis utilises a model of production under risk estimated on Finnish farm-level data to measure farmers' risk attitudes in a changing policy environment. We find evidence of heterogeneous risk preferences among farmers, as well as notable changes over time in farmers' degree of risk aversion. This result is due to the increase in the non-random part of farm income generated by the policy change after Finland's European Union accession. The analysis confirms the assertion that agricultural policies that are decoupled from production do affect input use and crop mix through their effect on farmers' risk attitudes.

Suggested Citation

  • Phoebe Koundouri & Marita Laukkanen & Sami Myyrä & Celine Nauges, 2009. "The effects of EU agricultural policy changes on farmers' risk attitudes," Post-Print hal-02666408, HAL.
    • Handle: RePEc:hal:journl:hal-02666408
    DOI: 10.1093/erae/jbp003
    as

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