Experimental Measure of Rural Household Risk Preference:The Case of the SLCP Area in Northern Shaanxi, China

Japan Agricultural Research Quarterly
ISSN 00213551
NII recode ID (NCID) AA0068709X
JARQ vol.50 no.3 cover
Full text

This study elicits the risk preferences of rural households through a field experiment conducted in Shaanxi Province using the Holt-Laury mechanism that considers the effects of implementing the Sloping Land Conversion Program (SLCP) on the risk preferences of farmers. The program has significantly changed the structure of farmers’ productive property, which may further influence their risk attitudes. This study reveals that household geographic and demographic characteristics have a significant effect on the risk preferences of participants in the experiment. More importantly, the SLCP has had a significant effect on farmers’ risk preferences. Hence, when assessing the outcome of such public policies as the SLCP that may affect the future incomes of farmers, we should consider the socioeconomic characteristics of the households concerned and the public policies implemented in the targeted area in detail.

Date of issued
Creator Qianqian MAO Wenlue WANG Shunji ONIKI Masaru KAGATSUME Jin YU
Subject

Holt-Laury mechanism

expected utility theory

Publisher Japan International Research Center for Agricultural Sciences
Available Online
NII resource type vocabulary Journal Article
Volume 50
Issue 3
spage 253
epage 265

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