The Stability and Evolution of Risk Attitudes and Time Preferences After a Natural Disaster

35 Pages Posted: 18 May 2020

See all articles by Dhanushka Thamarapani

Dhanushka Thamarapani

California State University, Chico

Marc Rockmore

Clark University - Department of Economics

Date Written: February 15, 2020

Abstract

By studying the short and medium run effects of the exposure to one of the largest recent earthquakes in Indonesia on risk and time preferences, we contribute to the literature on the stability of these parameters and the duration of the effects. We find a strong gender-specific effect one year after exposure which completely disappears within 8 years. Our analysis points to the importance of recovery efforts in mitigating the duration of the earthquakes effects on these parameters. We also rule out the mental health as a potential channel.

Keywords: Shocks, Behavioral Parameters, Earthquake

JEL Classification: I15, J13, J16, O53

Suggested Citation

Thamarapani, Dhanushka and Rockmore, Marc, The Stability and Evolution of Risk Attitudes and Time Preferences After a Natural Disaster (February 15, 2020). Available at SSRN: https://ssrn.com/abstract=3581550 or http://dx.doi.org/10.2139/ssrn.3581550

Dhanushka Thamarapani (Contact Author)

California State University, Chico ( email )

400 W 1st Street
Chico, CA 95928
United States

HOME PAGE: http://dthamarapani.com

Marc Rockmore

Clark University - Department of Economics ( email )

950 Main Street
Worcester, MA 01610
United States

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