Hostname: page-component-78c5997874-mlc7c Total loading time: 0 Render date: 2024-11-18T16:21:05.208Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ahsan, S., Ali, A.N., and Kurian, J.. “Towards a Theory of Agricultural Insurance.” American Journal of Agricultural Economics 64(1982):502–29.CrossRefGoogle Scholar
Ali, M. “Quantifying The Socio-Economic Determinants of Sustainable Crop Production: An Application to Wheat Cultivation in the Tarai of Nepal.” Agricultural Economics 14(1996):45–60.Google Scholar
Anderson, J.R., and Dillon, J.L.. Risk Analysis in Dryland Farming Systems. Rome: Food and Agriculture Organization of the United Nations, Farm Systems Management Ser. 2, 1992.Google Scholar
Anderson, J.R., and Griffiths, WE.. “Production Risk and Input Use: Pastoral Zone of Eastern Australia.” Australian Journal of Agricultural Economics 25(1981):149–59.CrossRefGoogle Scholar
Antle, J.M. “Testing the Stochastic Structure of Production: A Flexible Moment-Based Approach.” Journal of Business and Economic Statistics 1(1983):192–201.Google Scholar
Antle, J.M. “Pesticide Policy, Production Risk and Producer Welfare: An Econometric Approach to Applied Welfare Economics.” Washington, DC: Resources for the Future, 1988.Google Scholar
Babcock, A.B., and Hennessy, D.A.. “Input Demand Under Yield and Revenue Insurance.” American Journal of Agricultural Economics 78(1996):416–27.CrossRefGoogle Scholar
Barker, R.Economics Aspects of High-Yielding Varieties of Rice with Special Reference to National Rice Policies. Manila, Philippines: IRRI Report, FAO Study Group on Rice, March 1969.Google Scholar
Binswanger, H.P. “Attitude Towards Risk: Experimental Measurement in Rural India.” American Journal of Agricultural Economics 62(1980):395–407.CrossRefGoogle Scholar
Breusch, T.S.A. and Pagan, A.R.. “A Simple Test for Heteroskedasticity and Random Coefficient, Variation.” Econometrica 47(1979):1287–94.CrossRefGoogle Scholar
Budiman, H. “An Assessment of Farm-Level Input Demand and Production Under Risk on Rice Farms in the Cimanuk River Basin, Jawa Barat, Indonesia.” Ph.D. Dissertation, University of Iowa State, Ames, 1985.Google Scholar
Carlson, G.A. “A Decision Theoretic Approach to Crop Disease Prediction and Control.” American Journal of Agricultural Economics 52(1970):216–23.CrossRefGoogle Scholar
Carlson, G.A. “The Role of Pesticides in Stabilizing Agricultural Production.” Pesticides: Contemporary Roles in Agriculture, Health and the Environment. Sheets, J. and Pimental, D., eds. Totowa, NJ: Humana Press, 1979.Google Scholar
Carlson, G.A. “Risk Reducing Inputs Related to Agricultural Pests.” Risk Analysis for Agricultural Production Firms: Concepts, Information Requirements, and Policy Issues. Southern Research Project, S-180, Department of Agricultural Economics, University of Illinois, Urbana, 1984.Google Scholar
Dillon, J.S., and Scandizzo, P.. “Risk Attitude of Subsistence Farmers in Northeast Brazil.” American Journal of Agricultural Economics 60(1978):425–35.CrossRefGoogle Scholar
Griffiths, W.E., and Anderson, J.R.. “Using Time-Series and Cross-Section Data to Estimate a Production Function with Positive and Negative Marginal Risks.” Journal of the American Statistical Association 77(1982):529–36.CrossRefGoogle Scholar
Horowitz, K.J., and Lichtenberg, E.. “Insurance, Moral Hazard, and Chemical Use in Agriculture.” American Journal of Agricultural Economics 75(1993):926–35.CrossRefGoogle Scholar
Just, R.E., and Pope, R.D.. “Stochastic Specification of Production Functions and Economic Implications.” Journal of Econometrics 7(1978):67–86.CrossRefGoogle Scholar
Just, R.E., “Production Function Estimation and Related Risk Considerations.” American Journal of Agricultural Economics 61(1979):249–57.CrossRefGoogle Scholar
Just, R.E., A Comprehensive Assessment of the Role of Risk in Agriculture. Boston: Kluwer Academic Publishers, 2002.CrossRefGoogle Scholar
Kalirajan, K., and Huysman, A.. “An Econometric Analysis of Production Risk Using Farm Level Panel Data in the Philippines.” Indian Journal of Agricultural Economics 39(1984):614–29.Google Scholar
Kmenta, J.Elements of Econometrics. New York: Macmillan Publishing Co., 1986.Google Scholar
Mackill, DJ., Coffman, W.R., and Garrity, D.P.. Rainfed Lowland Rice Improvement. Manila, Philippines: International Rice Research Institute (IRRI), 1996.Google Scholar
Mood, M.A., Franklin, G.A., and Duane, B.C.. Introduction to the Theory of Statistics, 3rd ed. New York: McGraw-Hill Kogakusha, Ltd., 1974.Google Scholar
Moscardi, E., and de Janvry, A.. “Attitude Towards Risk Among Peasants: An Econometric Approach.” American Journal of Agricultural Economics 59(1977):710–16.CrossRefGoogle Scholar
Nimon, R.W., and Mishra, A.K.. “Revenue Insurance and Chemical Input Use Rate.” Paper presented at the annual meeting of the American Agricultural Economics Association, Chicago, IL, August 5-8, 2001.Google Scholar
Pandey, S., Masicat, P., Velasco, L.E., and Renato, V.. “Risk Analysis of Rainfed Rice Production System in Tarlac, Central Luzon, Philippines.” Experimental Agriculture 35(1999):225–37.CrossRefGoogle Scholar
Pingali, PL., and Roger, P.A.. Impact of Pesticides on Farmer Health and the Rice Environment. Boston: Kluwer Academic Publishers, and Los Baños, Laguna, Philippines: International Rice Research Institute, 1995.CrossRefGoogle Scholar
Pope, R., and Kramer, R.. “Production Uncertainty and Factor Demands for the Competitive Firm.” Southern Economic Journal 46(1979):743–48.CrossRefGoogle Scholar
Ramaswami, B. “Production Risk and Optimal Input Decisions.” American Journal of Agricultural Economics 74(1992):860–69.CrossRefGoogle Scholar
Rola, A.C., and Pingali, PL.. Pesticide, Rice Productivity, and Farmers’ Health: An Economic Assessment. Washington, DC: World Resources Institute, and Los Baños, Laguna, Philippines: International Rice Research Institute, 1993.Google Scholar
Rosegrant, M.W., and Herdt, R.W.. “Simulating the Impacts of Credits Policy and Fertilizer Subsidy on Central Luzon Rice Farms in the Philippines.” American Journal of Agricultural Economics 63(1981):655–65.CrossRefGoogle Scholar
Rosegrant, M.W., and Roumasset, J.A.. “The Effect of Fertilizer on Risk: A Heteroscedastic Production Function with Measurable Stochastic Inputs.” Australian Journal of Agricultural Economics 29(1985):107–21.CrossRefGoogle Scholar
Roumasset, J.A.Rice and Risk: Decision-Making Among Low-Income Farmers. Amsterdam: North-Holland Publishing Co., 1976.Google Scholar
Sandmo, A. “On the Theory of the Competitive Firm Under Price Uncertainty.” American Economic Review 61(1971):65–73.Google Scholar
Sillers, D.A. “Measuring Risk Preferences of Rice Farmers in Nueva Ecija (Philippines), An Experimental Approach.” Ph.D. Dissertation, University of Yale, New Haven, CT, 1980.Google Scholar
Smith, J., and Umali, G.. “Production Risk and Optimal Fertilizer Rates: An Application of the Random Coefficient Model.” American Journal of Agricultural Economics 67(1985):654–59.CrossRefGoogle Scholar
Smith, V., and Goodwin, B.. “Crop Insurance, Moral Hazard, and Agricultural Chemical Use.” American Journal of Agricultural Economics 78(1996):428–38.CrossRefGoogle Scholar
Syamisiah, I., Suprapto, D., and Bhuiyan, S.. “Rainwater Collection and Conservation for Alleviation of Drought and Increasing Productivity of Rainfed Ricelands in Indonesia.” Paper presented at the International Symposium on Rainfed Lowland, Semarang, Central Java, Indonesia, February 8-13, 1993.Google Scholar