Panel data nonparametric estimation of production risk and risk preferences: an application to Polish dairy farms

Tomasz Gerard Czekaj, Arne Henningsen

Abstract

We apply nonparametric panel data kernel regression to investigate production risk, out-put price uncertainty, and risk attitudes of Polish dairy farms based on a firm-level unbalanced panel data set that covers the period 2004–2010. We compare different model specifications and different approaches for obtaining firm-specific measures of risk attitudes. We found that Polish dairy farmers are risk averse regarding production risk and price uncertainty. According to our results, Polish dairy farmers perceive the production risk as being more significant than the risk related to output price uncertainty.
Original languageEnglish
PublisherDepartment of Food and Resource Economics, University of Copenhagen
Number of pages68
Publication statusPublished - 2013
SeriesIFRO Working Paper
Number2013/6

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