Mind experiments involving choice between risky and sure farm alternatives were used to assess risk attitudes of samples of small farm owners and sharecroppers in Brazil. Results indicate that most subsistence farmers are risk averse, and that risk aversion tends to be more common and perhaps greater among owners than sharecroppers. In an expected utility context, distribution of risk attitude coefficients (based on mean‐standard deviation, mean‐variance, and exponential utility functions) was diverse and not necessarily well represented by an average sample value. Econometric analysis indicated that income level and perhaps other socioeconomic variables influence risk attitude.
A method is presented for solving agricultural sector models under risk to obtain perfectly competitive levels of outputs and prices in all product markets when producers behave according to an E, V decision criterion. The nature of market equilibrium behavior is considerably more complicated under risk than in a deterministic setting. This presents difficulties in designing models which will always provide meaningful economic answers. These difficulties are overcome by stipulating conditions under which the proposed model is applicable. The resultant model is a quadratic programming problem, and linearization techniques are suggested which enable solutions to be obtained through conventional linear programming computer codes.
This study reviews the literature on the evaluation of the Olympic Games, within the broader framework of their significance as cultural assets and opportunities for endogenous growth and sustainable development of the host city. The study reviews the main approaches to the economic assessment of the Games, from the point of view of the underlying economic concepts and methodologies, as well as of the empirical results obtained. It focuses on the effects that are measured and on those, which even though important, are generally neglected. The methodologies utilized for the quantitative assessments of the Games are reviewed with special emphasis on impact and cost-benefit analysis, both on ex ante and ex post basis. The studies surveyed are analysed from the point of view of different sets of effects on the host city, and for a limited number of cases, on the host country. While the major focus is on hosting the Summer Olympics, some attention is also paid to the bidding cities, the Winter Olympics and the Paralympics. The general findings appear to be controversial with some hints of positive overall effects, but also with a well-documented tendency to exaggerate the benefits and underestimate the costs of holding the Games in the ex ante versus the ex post studies. The survey finally suggests that ex post cross-country econometric studies tend to catch sizable differential and persistent benefits ignored by individual studies, especially on macroeconomic and trade variables.
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