Consistency of risk premium measures |
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Authors: | Darren Hudson Keith Coble Jayson Lusk |
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Institution: | Department of Agricultural Economics, Mississippi State University, Mississippi State, MS 39762;Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078 |
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Abstract: | This research uses the results of a series of within‐sample experiments to elicit risk premium measures from agricultural producers. Results show that there is little consistency between measures in different contexts and using different elicitation methods, suggesting that underlying risk preferences are not consistent. These results highlight some of the difficulty with expected utility theory and risk measurement. |
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Keywords: | Q12 C81 C91 D81 |
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