Abstract
In applied agricultural economic research various risk-attitude elicitation techniques are used. Here, we investigate whether risk-attitude measures rooted in the expected utility framework are related to measures rooted in the multi-item scale framework. Using a second-order factor analytical model, and data obtained from personal computer-guided interviews with 373 farmers, we investigate whether the common variance among the (latent) risk-attitude measures can be accounted for by a global risk-attitude construct. We find that the different risk-attitude measures are related, and that the global risk-attitude construct is significantly related to farmers' intention to use futures contracts. Our research suggests that farmers' risk attitude is a higher-order characteristic that cannot be effectively extracted by a single measure.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 993-1009 |
| Number of pages | 17 |
| Journal | American Journal of Agricultural Economics |
| Volume | 83 |
| Issue number | 4 |
| DOIs | |
| State | Published - 2001 |
Keywords
- Expected utility
- Futures usage
- Global risk-attitude construct
- Multi-item scale
- Second-order factor analysis
- Validity
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics
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