Risk Preferences, Production Risk and Firm Heterogeneity*

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2003
Volume: 105
Issue: 2
Pages: 275-293

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A new technique is proposed for deriving the risk preference function under production risk and expected utility of profit maximization. The derivation depends on neither a specific parametric form of the utility function nor any distribution of the error term representing production risk. The proposed risk preference function is flexible enough to test different types of risk behavior and symmetry of the output distribution. Furthermore, our production risk specification allows for inputs with positive and negative marginal risk. The econometric model accommodates production risk, risk preferences and firm heterogeneity simultaneously. Norwegian salmon farming data are used as an application.

Technical Details

RePEc Handle
repec:bla:scandj:v:105:y:2003:i:2:p:275-293
Journal Field
General
Author Count
2
Added to Database
2026-01-25