Measuring risk aversion among asset poor small-scale farmers in the Western Cape, South Africa

Gwata, Feri

Measuring risk aversion among asset poor small-scale farmers in the Western Cape, South Africa

Master Thesis

2010

Publisher

University of Cape Town

Department

School of Economics

Faculty

Faculty of Commerce

Abstract

This paper presents an empirical analysis of the contentious issue regarding risk preferences of small-scale farmers in low-income countries. Resource-poor farmers have often been described as being inherently risk averse given their tendency to under-invest in risky yet profitable crop technologies. In contrast to this dominant view we argue that it is unlikely that these farmers have an inherent disposition towards risk aversion. We hypothesize that the observed under-investment in crop technologies is largely due to the financial constraints which these farmers face.

Description

Includes bibliographical references (leaves 48-52).

Keywords

Economics

Reference:

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Masters

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