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|Title: ||Farm household risk balancing: empirical evidence from Switzerland|
|Authors: ||de Mey, Yann|
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.|
|Type: ||Conference Material|
|Appears in Collections: ||Research publications|
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