Intertemporal Risk Management Decisions of Farmers under Preference, Market, and Policy Dynamics



Figure 6. Sensitivity of Optimal Hedge Ratios in Response to Time Preference

0.34


0.32


Optimal Hedge Ratio


0.3


0.28


0.26


о 'lr1 -B-Yr2 л 'lr! -X-Yr4 -x-Yr5


0.24

0.1


0.2         0.3         0.4        0.5         0.6         0.7         0.8         0.9

β

41



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