Affiliations: College of Economics and Management, Heilongjiang Bayi Agricultural University, Daqing, Heilongjiang, China
Correspondence:
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Corresponding author. Ning Wang, E-mail: wn1991@sina.com.
Abstract: Farmers’ risk preferences and degree of risk aversion affect their production and management decisions. According to Just-Pope stochastic production function model, we get the expression of the single element risk-aversion coefficients that include input element and hog slaughter absolute price, compared with the expression of relative price mean risk-aversion coefficients, it can directly observe the influence of the element and output price on single element risk-aversion coefficients. Based on the regression procedures and the calculation method of the average value of the element risk-aversion coefficients, mean risk-aversion coefficients of per household medium-scale hog producers are calculated in 76 households, 11 counties, Heilongjiang province. The results show that medium-scale hog producers are risk-averse, accounting for 96%; newborn animal weight and feed consumption affect hog producers’ degree of risk aversion. The former is the risk-reducing input element, while the latter is the risk-increasing input element.
Keywords: Medium-scale hog producers, just-pope stochastic production function, newborn animal weight, mean risk-aversion coefficients
