Do Irish cereal producers use multiple cropping as a strategy for dealing with risk?

Department of Economics, Finance and Accounting, National University of Ireland - Maynooth, Economics, Finance and Accounting Department Working Paper Series 01/2003;
Source: RePEc


Portfolio theory suggests that risk-averse agents favour a diversified portfolio of assets as a strategy to offset market risk. This paper explicitly tests whether Irish cereal producers decision to engage in multi-crop production (asset diversification) in itself reveals a relatively risk-averse nature. The issue is examined within the context of sample selection bias, where multi-croppers (portfolio diversifiers) are treated as a sub-sample of a general sample (mono + multi croppers) of Irish cereal production.

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Available from: Kieran Mcquinn