We present a systematic review of the extensive body of research on farmer risk preference measurement across Europe. We capture the methodological developments over time and discuss remaining challenges and potential areas for further research. Given the constantly evolving policy environment in Europe, and increasing climate-change related risks and uncertainties, there is large value to be gained from enhancing our understanding of this fundamental aspect of farmers’ decision making processes and consequent actions.
- Risk preferences
- Expected Utility
- Prospect theory
Iyer, P., Bozzola, M., Hirsch, S., Meraner, M., & Finger, R. (2020). Measuring Farmer Risk Preferences in Europe: A Systematic Review. Journal of Agricultural Economics, 71(1), 3-26. https://doi.org/10.1111/1477-9552.12325