Investing Today or Tomorrow? An Experimental Approach to Farmers’ Decision Behaviour

Maart-Noelck, Syster C.; Mußhoff, Oliver

doi:10.1111/j.1477-9552.2012.00371.x

Cited by 38 publications

(24 citation statements)

References 52 publications

(101 reference statements)

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“…Nevertheless, the observed disinvestment reluctance is even more pronounced than predicted by the ROA. These findings are consistent with previous investigations (Oprea et al 2009;Sandri et al 2010;Musshoff et al 2013;Maart-Noelck and Musshoff 2013).…”

Section: Test Of H1 'Roa Superiority To Npv'supporting

confidence: 94%

“…Their research revealed that participants can learn from personal experience to closely approximate optimal exercise of wait options. Maart-Noelck and Musshoff (2013) carried out an experiment with 106 farmers on the decision behaviour in a (non)-agricultural investment situation. They found that the timing of investments was not exactly predictable with the ROA or with the NPV but lied between both benchmarks.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

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Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours

Ihli

Maart-Noelck

Mußhoff

2013

Aus J Agri & Res Econ

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In this article, we analyse the (dis)investment behaviour of farmers in a within-subject designed experiment. We ascertain whether, and to what extent, the real options approach (ROA) and the classical investment theory can predict farmers' (dis) investment behaviour. We consider a problem of optimal stopping, stylising an option to (dis)invest in agricultural technology. Our results show that both theories do not explain exactly the observed (dis)investment behaviour. However, some evidence was found that the ROA predicted the decision behaviour of farmers better than the classical investment theory. Moreover, we found that farmers learn from repeated investment decisions and consider the value of waiting over time. Socio-demographic and farm-specific variables also affect the (dis)investment behaviour of farmers.

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Section: Test Of H1 'Roa Superiority To Npv'supporting

confidence: 94%

Section: Theory and Hypothesesmentioning

confidence: 99%

Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours

Ihli

Maart-Noelck

Mußhoff

2013

Aus J Agri & Res Econ

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“…Petani-peternak bersifat rasional sesuai dengan hasil penelitian Maart-Noelck & Musshoff (2013) yang menyatakan bahwa perilaku petani dalam mengambil keputusan untuk berinvestasi guna memperluas usahanya adalah belajar dari investasi sebelumnya dan melakukan pertimbangan nilai yang diperoleh dengan mengamati dari waktu ke waktu. Jika investasi dari waktu ke waktu dapat memberikan nilai tambah atau menguntungkan, maka petani akan memutuskan berinvestasi sehingga pada gilirannya dapat meningkatkan produksi dan sebaliknya.…”

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Developing Beef Cattle Industry at Smallholders to Support Beef Self-Sufficiency

Widiati¹

2015

Indonesian Bulletin of Animal and Veterinary Sciences

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ABSTRAKLebih dari 90% pasokan daging sapi lokal berasal dari peternakan rakyat yang kurang efisien, sehingga pertumbuhan produksi daging sapi lokal belum dapat memenuhi permintaan nasional. Harga daging sapi impor lebih rendah dibandingkan daging lokal, sehingga di tingkat peternak terjadi penyesuaian harga yang merugikan. Naskah ini mendiskripsikan gagasan yang dapat memformulasikan strategi alternatif untuk membangun industri peternakan sapi potong rakyat. Strategi yang diperlukan untuk membangun industri peternakan sapi potong rakyat, diantaranya adalah (1) Pengadaan fasilitas pasar peternakan guna memudahkan akses untuk mendapatkan sarana produksi; (2) Ketersediaan teknologi yang dapat diterapkan peternak dan memberikan perbaikan kesejahtaraan melalui peningkatan produktivitasnya; (3) Menciptakan pasar produk ternak yang menguntungkan bagi peternak; dan (4) Terbentuknya subsistem lembaga pembiayaan tingkat perdesaan untuk mendanai peningkatan produksi dan produktivitas usaha. Perlu adanya keterkaitan secara bersinergi diantara strategi tersebut disertai dukungan kebijakan pemerintah yang operasional.Kata kunci: Industri, peternakan sapi potong rakyat, kecukupan daging sapi ABSTRACT Developing Beef Cattle Industry at Smallholders to Support Beef Self-SufficiencyMore than 90% of local beef supply derived from smallholder farmers with a relatively slow in growth that could not meet national demand. Price of imported beef was lower than that of the local beef, thus price adjustment in farmers level was not profitable. The purpose of this study is to recommend alternative strategies to develop beef cattle industry under smallholders' farmers condition. Strategies to develop the beef cattle industry are (1) To provide agricultural markets in order to facilitate farmer's access easily to get some production inputs; (2) To facilitate technology that can be applied by farmers to increase cattle productions, hence improving farmers' welfare; (3) To create a profitable market for animal produced by farmers; and (4) To establish subsystem of financing institutions at the village level to finance farmer's cattle business. The inter-relationship among those strategies is needed to harmonize the implementation, supported by operational government policy.

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“…This methodology presented by Holt and Laury [36] has not been changed and is already established in agricultural economics [43,44]. First, participants are introduced to the game with the explanation of the lottery whereby participation is completely voluntary and the outcomes are always positive.…”

Section: Holt and Laury Lotterymentioning

confidence: 99%

Policy impact analysis of penalty and reward scenarios to promote flowering cover crops using a business simulation game

Holst

Mußhoff

Doerschner

2014

Biomass and Bioenergy

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JEL classification: C90 Q24 Q28 Keywords: Flowering cover crops Alternative biogas substrate Business simulation game Policy impact analysis Reward policy Penalty policy a b s t r a c t Due to an increasing number of biogas plants and the positive qualities of maize as a biogas substrate, the cultivation of silage maize has risen in Germany. However, there are still various reasons for the limitation of the cultivation area of silage maize. Hence, policymakers arecurrently discussing various alternative biogas substrates and ways to promote their cultivation. One possible alternative is the use of special flowering cover crops with additional ecological benefits. Using a business simulation game conducted with farmers, the present study investigates whether the implementation of a reward and penalty policy will improve the uptake of flowering cover crops in the production programs of farmers. The results indicate that the implementation of these policy measures was followed by a significant increase in the cultivation area of flowering cover crops. The penalty policy leads to a stronger increase in the size of the cultivation area of flowering cover crops than the reward policy, even though the policies have the same income effect for farmers. Furthermore, the results reveal that the cultivation of flowering cover crops is influenced by various socio-demographic variables.

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Investing Today or Tomorrow? An Experimental Approach to Farmers’ Decision Behaviour

Cited by 38 publications

References 52 publications

Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours

Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours

Developing Beef Cattle Industry at Smallholders to Support Beef Self-Sufficiency

Policy impact analysis of penalty and reward scenarios to promote flowering cover crops using a business simulation game

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