The Stability and Evolution of Risk Attitudes and Time Preferences After a Natural Disaster
35 Pages Posted: 18 May 2020
Date Written: February 15, 2020
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: Suggested Citation