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Violence during Civil War, Risk Preference, and Time Preference: Evidence from North-West Pakistan

Takashi Kurosaki, Yuichi Kubota and Kazuhiro Obayashi

Economic Review, 2020, vol. 71, issue 4, 317-332

Abstract: How does the exposure to violence during civil war affect citizenʼs life during the recovery process ? As one of these influences of wartime violence, we analyze citizensʼ time and risk preferences for the case of north-west Pakistan where a decades-long civil war ended and tribal autonomy was converted into the governance by the central state of Pakistan. Using micro data of approximately 2,800 respondents collected in a unique survey conducted in 2018-19, we found that respondents who were exposed to violence during the civil war had higher risk aversion and present bias. The tendency for risk aversion is stronger among those who experienced multiple types of violence and whose family members also suffered from the violence. The correlation of risk aversion/present bias with violence exposure was higher among less educated respondents than among more educated respondents.

JEL-codes: D74 D92 H56 O12 (search for similar items in EconPapers)
Date: 2020
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/70079/keizaikenkyu07104317.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:hit:ecorev:v:71:y:2020:i:4:p:317-332

DOI: 10.15057/70079

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