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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/17632

Title: Farm household risk balancing: empirical evidence from Switzerland
Authors: de Mey, Yann
Wauters, E.
Smid, D.
Lips, M.
Vancauteren, M.
Van Passel, S.
Issue Date: 2014
Citation: 14th EAAE Congress, Ljubljana, 26-29th August 2014
Abstract: This paper presents empirical evidence on household risk balancing behavior, i.e. farm households making strategic off-farm decisions in response to changes in expected business risk. Using Swiss FADN data, we estimate a fixed effects seemingly unrelated regression model to analyse how farm households jointly alter their levels of debt, off-farm income and consumption. The evidence suggests that farm households not only make strategic changes in debt levels (original risk balancing), but also strategic off-farm decisions (household risk balancing). Our results demonstrate that part of the behavioral risk response of farm households is ignored when focusing solely on farm-level analyses.
URI: http://hdl.handle.net/1942/17632
Category: C2
Type: Conference Material
Appears in Collections: Research publications

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