The cost of agricultural production risk
研究了偏好和技术对生产者事前支付意愿的相对影响，发现生产溢价占支付意愿的40-85%，表明技术比风险偏好更重要。
We examine the relative influence of preferences and technology on producers' ex ante willingness to pay for a reduction in production risk.A risk averse producer pays both an Arrow-Pratt risk premium to stabilize income and a 'production premium' to stabilize yield.Using soil-nitrate risks as our motivating example, we demonstrate that the production premium accounts for 40-85% of producers' willingness to pay for risk reduction.These results demonstrate the relative importance of technology over risk preferences when estimating the costs of agricultural production risk.