Violence, psychological trauma, and risk attitudes: Evidence from victims of violence in Colombia
Andres Moya ()
Journal of Development Economics, 2018, vol. 131, issue C, 15-27
Traumatic experiences can alter individuals' behavior and deplete their ability to make economic decisions. In this article, I analyze the effects of violence on risk attitudes. For this purpose, I sampled a group of victims of violence in Colombia and collected data on the severity and temporal proximity of their exposure to violence and on their symptoms of psychological trauma. I find that more severe violence brings about higher levels of risk aversion in the gains and ambiguity domains but that the behavioral effect is not permanent. I also find that the effect is driven by severe anxiety disorders, which is consistent with studies in psychology. The results suggest that violence can affect poverty dynamics through a behavioral channel. (JEL: D1; C9; O1; I1; I3).
Keywords: Risk aversion; Violence; Psychological trauma; Colombia (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Violence, Emotional Distress and Induced Changes in Risk Aversion among the Displaced Population in Colombia (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:131:y:2018:i:c:p:15-27
Access Statistics for this article
Journal of Development Economics is currently edited by M. R. Rosenzweig
More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().