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Risk and Fertilizer Use in the Rainfed Rice Ecosystem of Tarlac, Philippines

Published online by Cambridge University Press:  28 April 2015

Abedullah  and
Sushil Pandey
Abedullah
Affiliation:
Institut für Agrarökonomie und Verfahrenstechnik, University of Rostock, Justus-von-Liebig-Weg 7, Germany
Sushil Pandey
Affiliation:
Social Sciences Division (SSD), International Rice Research Institute (IRRI), Manila, Philippines
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Abstract

The study analyzes the effect of risk aversion on the optimal level of fertilizer by employing a pooled time-series cross-sectional survey data collected from 46 rainfed rice farmers in Tarlac, Central Luzon, Philippines. Based on a heteroscedastic specification of production function, fertilizer was found to be a risk-increasing input, but the effect of risk aversion on the optimal fertilizer use was estimated to be moderate. Explanations for the low average rate of application of fertilizer under rainfed conditions thus need to be found elsewhere.

Keywords

expected utilityfertilizerheteroscedastic production functionJust and Pope's and Antle's techniquesrainfedrisk aversionQ12
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 241 - 250
Copyright
Copyright © Southern Agricultural Economics Association 2004

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