Plan B - University Access Only
Master of Science (MS)
The three main objectives of this research paper are: 1) To develop a producer profile for participants in the South Dakota State Calf Value Discovery (CVD) project, 2) To empirically evaluate the relationship between producer profile attributes and producer behavior towards risk, as measured by the relative risk aversion index approach, and 3) Compare the relative risk aversion index (RRAI) approach to a simple von Neumann-Morgenstern approach. A questionnaire was mailed to 100 participants of the South Dakota State Calf Value Discovery (CVD) project to gather data. Standard statistical results was used to determine which factors significantly influenced individuals in becoming more risk averse or preferring in their investment decisions. The four variables found to be significant were: 1) net-income, 2) age, 3) marital status, and 4) level of education. This study provides empirical evidence that supports previous literature findings in what social, economic, and behavioral attributes influence relative risk aversion (RRA) and what attributes relative risk aversion (RRA) influences. The empirical results were found through the means of two procedures: Spearman correlation matrix and regression analysis. The two procedures were also used to determine if there were any consistency between the relative risk aversion index (RRAI) and von Neumann approaches. This study determined that the relative risk aversion index (RRAI) was the best method in measuring risk preference. Finally, the empirical findings and procedures allowed for the accomplishment of all three objectives of this study.
Number of Pages
South Dakota State University
Copyright © 2004 Rozhyer Q. Aware
Aware, Rozhyer Q., "Testing the Robustness of Relative Risk Elicitation Procedures Using Cow/Calf Operator's Economic, Social, and Behavioral Attributes" (2004). Economics Graduate Students Plan B Research Projects. 20.