Munich Personal RePEc Archive

On the sources of risk preferences in rural Vietnam

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 disaster. In particular, individuals highly affected by climate volatility show a long term risk aversion.

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