ANALISIS RISIKO USAHA BUDIDAYA IKAN LELE DUMBO DI KECAMATAN KOTA GAJAH KABUPATEN LAMPUNG TENGAH

This research aims to determine the level of risk and behavior faced by farmers in dumbo catfish farming. This research was a survey conducted in Kota Gajah Subdistrict of Central Lampung Regency in August-September 2018. Respondents are 44 dumbo catfish farmers members of the Fish Cultivation Group (pokdakan) taken using simple random sampling. The results of this research showed that the dumbo catfish farming in Kota Gajah Subdistrict of Central Lampung Regency has the CV value price risk of 0.04 and the lower limit (L) of IDR15,320. The CV value less than 0.50 means that farmers risk suffered losses due to changes in low classified price. CV value of production risk is 0.04 and the lower limit (L) is 2,449.33 kg. The CV value less than 0.50 means that farmers risk experiencing losses due to changes in production relatively low. Based on the analysis that was done with the quadratic utility approach shows that dumbo catfish farmers in Kota Gajah Subdistrict are 41 farmers behave neutrally and 3 farmers behave boldly in facing the risk of catfish farming.Key words: behavior, dumbo catfish, farmers, risk

Some Forms of InvestorRiskTolerance in Investing: Review Theory

Investors in investing are always accompanied by a sense of tolerance for the risk of funds invested in an asset. Each investor has a different form of risk tolerance, depending on the function of the utility. This paper aims to conduct a theoretical study of the forms of investor risk tolerance for several utility functions. This study is carried out by reviewing several utility functions which include: square root utility, cubic fraction utility, quadratic utility, exponential negative utility, and logarithmic utility. Based on the results of the study for each of these utility functions, successively obtained risk tolerance in the form of linear, linear, linear, constant, and linear. Linear risk tolerance illustrates that an investor changes the value of his investment in line with changes in the level of risk faced.

The Precautionary Saving Model

The chapter removes the assumption of quadratic utility and examines situations in which consumers respond to income risk by increasing current saving to protect against future shocks to income. This motive for saving is called precautionary saving, and it provides an explanation for some of the empirical findings in the literature, such as the observation that people with more volatile incomes tend to save more than individuals with more stable income patterns. Moreover, it can also explain the excess sensitivity of consumption to expected income changes. Indeed, a model with precautionary saving produces a good many predictions similar to those of the model with liquidity constraints.

A Behavioral Analysis of Stochastic Reference Dependence

We examine the reference-dependent risk preferences of Kőszegi and Rabin (2007), focusing on their choice-acclimating personal equilibria. Although their model has only a trivial intersection (expected utility) with other reference-dependent models, it has very strong connections with models that rely on different psychological intuitions. We prove that the intersection of rank-dependent utility and quadratic utility, two well-known generalizations of expected utility, is exactly monotone linear gain-loss choice-acclimating personal equilibria. We use these relationships to identify parameters of the model, discuss loss and risk aversion, and demonstrate new applications. (JEL D11, D81)