| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
From total farm to household risk: implication for risk management
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| Autores: |
de Mey, Yann
Wauters, Erwin
van Winsen, Frankwin
Vancauteren, Mark
Van Passel, Steven
Lauwers, Ludwig H.
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| Data: |
2012-02-23
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| Ano: |
2012
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| Palavras-chave: |
Household risk
Typical dairy farms
Stochastic simulation
Household buffering capacity
Risk and Uncertainty
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| Resumo: |
Modeling the farm level impact of risk management programs, policies and instruments is traditionally been done on a farm-level basis. Hence, farm simulation models typically use the behavioural assumption of profit or utility maximization is risk aversion taken into account. However, abundant – albeit indirect – evidence from different literature sources suggest that minimization of household risk – being the chance of falling below a certain threshold level of household cash flow – might be more realistic behavioural assumption. In this paper, we present concepts of operational, financial, total farm and household risk. Further, using a stochastic simulation model on two typical Belgian dairy farms, we illustrate possible farmers responses in the presence or absence of farm income stabilization mechanisms. Although some limitations to the current model are mentioned, the results already suggests the usefulness of considering household risk when assessing the impact of risk management programs, policies and instruments.
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| Tipo: |
Presentation
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/122470
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| Relação: |
European Association of Agricultural Economists>123rd Seminar, February 23-24, 2012, Dublin Ireland
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| Formato: |
16
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