Property rights and risk aversion: Evidence from a titling program

Fernando Aragon, Oswaldo Molina and Ingo W. Outes-León

World Development, 2020, vol. 134, issue C

Abstract: Evidence suggests that major events, like war or natural disasters, affect risk attitudes. This paper shows that similar effects can also be associated with institutional changes, such as improved property rights. Using the case of a large titling program in Peru, we find that the program reduced risk aversion. The effects are sizable, persistent, and seem to be driven by improved security of tenure. These results highlight an understudied channel through which property rights could shape economic outcomes.

Keywords: Property rights; Security of tenure; Risk aversion (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:134:y:2020:i:c:s0305750x20301467

DOI: 10.1016/j.worlddev.2020.105020

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