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Farmers’ Risk Preferences and the Determinants of Risk Preferences in Upland Areas of Vietnam.
08/03/21 09:36AM
Nguyen Van Song, Ho Ngoc Cuong, Dinh Van Tien, Thai Van Ha and Vu Ngoc Huyen. Revista Argentina de Clínica Psicológica, 2020.
Abstract: This study conducted to examine the risk preferences of upland farmers of Vietnam. The modified multiple price list method of Holt and Laury (2002) was used to elicit the farmers’ risk preferences. A linear regression was estimated to determine the sociodemographic factors affecting farmers’ risk preferences. The results indicated that 80.5% of respondents are risk averse, 12% are risk neutral and 7.5% are risk loving. There exists the relationship between risk preferences with socio-demographic characteristics such as nonfarm and farm income, sex, age. The majority of respondents are risk averse, which will influence farm operations and management decision. The policies in the uplands of Vietnam must consider reduce the risk or make them less risk averse to the farmers by generating more farm and non-farm income, investing on farmers’ education and training, and supporting risk management strategies.


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