Violence, psychological trauma, and risk attitudes: Evidence from victims of violence in Colombia

Moya, Andrés

doi:10.1016/j.jdeveco.2017.11.001

Cited by 134 publications

(66 citation statements)

References 36 publications

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“…However, they do not infer a specific mechanism to explain their findings. Outside the context of markets, there are also few but growing number of empirical studies that show changes in risk preferences due to individual's exposure to conflict and violence (Voors et al, 2012;Callen et al, 2014;Moya, 2018), climate shocks and natural disasters (Eckel et al, 2009;Cameron and Shah, 2015;Hanaoka et al, 2015;Cassar et al, 2017;Di Falco and Vieider, 2018), and financial shocks (Cohn et al, 2015).…”

Section: Endogenous Risk Preferencesmentioning

confidence: 99%

Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia

2020

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This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk preferences. Survey and experimental data were collected from smallholder farmers that have access to weather index-based crop insurance (WICI) in Ethiopia. We use an endogenous switching (ESP) model to address self-selection and simultaneity bias. Results from the ESP model show that farmers who purchased WICI are less likely to be riskaverse compared with non-purchaser farmers. Similarly, non-purchasers would have attained a significant reduction in their risk-aversion if they had taken up the insurance product. We also find that WICI has a positive and statistically significant effect on farmers' real-life risk-taking behavior as exemplified by mineral fertilizer use. The implication of our findings is that formal climate risk transfer mechanisms can positively influence households' economic decisions and outcomes, through reducing risk aversion. Therefore, they can possibly contribute to poverty alleviation and economic development within agrarian economies that are exposed to recurrent and severe climate shocks. JEL-Codes: C910, D030, I380, N270.

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Section: Endogenous Risk Preferencesmentioning

confidence: 99%

Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia

2020

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“…Similarly, recent economic evidence indicates a relationship between psychological factors, emotions, and exposure to violent shocks (Baysan et al, 2018;Card and Dahl, 2011;Moya, 2018;Baysan et al, 2018). Immediate emotions (such as stress or uncertainty) that at-risk individuals experience at the time of decision making can lead them to take extreme actions with long-lasting consequences that are less efficient than actions of agents less exposed to violence (Loewenstein, 2000).…”

Section: Emotional Regulation and Economic Decision Makingmentioning

confidence: 99%

Preventing Violence in the Most Violent Contexts: Behavioral and Neurophysiological Evidence

Diaz¹,

Egana-delSol

2019

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…We first exploit the panel data nature of our data. We control for household fixed effects ( ) that absorb all time-invariant unoservables, such as risks and time preferences or direct victimization during times of conflict, which determine households' ability to cope with shocks and are also shaped by the legacies of conflict (Bauer et al 2016;Moya 2018;Moya and Carter 2019;Voors et al 2012). Other unobservable dynamics correlated with rebelocracy levels might bias our coefficient estimates.…”

Section: Estimates For Welfare and Agricultural Productionmentioning

confidence: 99%

“…2 Over the long term, countries may recover from physical and human capital destruction if a threshold is not exceeded (Justino and Verwimp 2013;Miguel and Roland 2011;Murdoch and Sandler 2002). However, the legacy of conflict can be long lasting through the negative impacts of conflict on children while in utero or during early childhood (Camacho 2008;Ichino and Winter-Ebmer 2004;León 2012), changes in preferences and behaviour (Bauer et al 2016;Moya 2018;Moya and Carter 2019;Voors et al 2012), and institutional transformations (Arjona 2016;Gilligan et al 2014;Justino and Stojetz 2018;Kalyvas et al 2008;Mampilly 2011;Tilly 1992).…”

Section: Introductionmentioning

confidence: 99%

The effects of wartime institutions on households’ ability to cope with shocks: Evidence for Colombia

Arteaga¹,

Campo²,

Arjona³

et al. 2019

WIDER Working Paper

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.Abstract: This paper studies the legacies of wartime institutions, measured as rebelocracy, on the ability of households to cope with negative income shocks. Rebelocracy is the social order established by non-state armed actors in the communities they control. By providing public goods and a predictable framework within which to operate, rebelocracy may generate incentives for households to expand production and accumulate wealth, placing them in a higher income trajectory than households living in war zones amid violence and chaos. If these better economic conditions persist after non-state armed actors leave the territory, households in communities that had stronger rebelocracy levels will be better able to cope with negative income shocks. The empirical strategy identifies households' responses to random weather shocks and estimates their heterogeneous impact by the level of rebelocracy. Using a household panel in four conflict regions in Colombia, the estimation controls for time-invariant unobservables. The study finds that in regions with strong rebelocracy, households are better able to cope with negative weather shocks than those living in regions with non-state armed actor presence but with limited or no intervention. The former households face a lower economic impact of weather shocks and resort less to survival migration. The effect of rebelocracy is driven mostly by the provision of public goods by non-state armed actors. While this paper is not claiming causal impacts of rebelocracy, its coefficient estimates are robust to controlling for confounders that may explain rebelocracy in the first place.

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Violence, psychological trauma, and risk attitudes: Evidence from victims of violence in Colombia

Cited by 134 publications

References 36 publications

Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia

Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia

Preventing Violence in the Most Violent Contexts: Behavioral and Neurophysiological Evidence

The effects of wartime institutions on households’ ability to cope with shocks: Evidence for Colombia

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