Dang, Duc Anh (2012): On the sources of risk preferences in rural Vietnam.
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In this paper, I provide a new empirical evidence that natural environment can shape individual risk preferences. By combining historical data on climate variation and contemporary survey questions on risk aversion, I find that risk aversion is significantly different for people who live in areas that have suffered high frequency of natural disasters. In particular, individuals highly affected by climate volatility show a long term risk aversion. The finding also supports the hypothesis that when people used to live in risky environment, an incremental increase in risk affects their risk preferences less.
|Item Type:||MPRA Paper|
|Original Title:||On the sources of risk preferences in rural Vietnam|
|English Title:||On the Sources of Risk Preferences in Rural Vietnam|
|Keywords:||Climate variation, risk aversion, Vietnam|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Economics; Underlying Principles
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
|Depositing User:||Anh D Dang|
|Date Deposited:||11. May 2012 05:02|
|Last Modified:||19. Feb 2013 09:38|
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