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추성민(Sungmin Cheu),안동환(Donghwan An) 한국농업경제학회 2018 農業經濟硏究 Vol.59 No.3
This study examines farm households’ risk balancing behavior in Korea. We use a SUR (seemingly unrelated regression) model to reflect the interdependence in farm households’ risk balancing behavior where they adjust their financial structure, off-farm work decisions, and consumption level, etc. We find that Korean farm households make strategic farm financial risk decisions, off-farm business decisions, and consumption adjustment in response to exogenous changes in expected farm risk or business risk. This study also shows that large farms make more use of off-farm risk balancing, while small farms appear to make more use of financial risk balancing and adjusting consumption level.