Journal
GENEVA RISK AND INSURANCE REVIEW
Volume 45, Issue 1, Pages 36-74Publisher
PALGRAVE MACMILLAN LTD
DOI: 10.1057/s10713-019-00044-w
Keywords
Risk preferences; Non-expected utility; Flood; Vietnam; Field experiment
Categories
Ask authors/readers for more resources
We conducted an artefactual field experiment in Vietnam to investigate whether and how experiencing a natural disaster affects individual attitudes toward risks. Using experimental and real household data, we show that households in villages affected by a flood in recent years exhibit more risk aversion, compared with individuals living in similar but unaffected villages. Interestingly, this result holds for the loss domain, but not the gain domain. In line with Prospect Theory, Vietnamese households distort probabilities. The distortion is related to aid received and social networks participation, but is unrelated to flood experience.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available