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Wening Sarwosri, Arieska
Mußhoff, Oliver
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EFForTS Discussion Paper Series 28
This study examines whether the decision of crop diversification for perennial crops is based on underlying risk attitudes and time preferences. We conducted incentivised field experiments on Sumatra Island, Indonesia, involving farmers who cultivate rubber and farmers who cultivated rubber and oil palm trees, i.e., undertook crop diversification. We estimated risk attitudes and time preferences jointly. The results indicated that farmers who undertook crop diversification were statistically significantly more risk-averse than rubber farmers. However, the time preferences between the two groups were not statistically significantly different.
crop diversification
oil palms
risk attitudes
time preference
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Working Paper

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