Perception and Action in a Conflict Zone: a Study of Rural Economy and Rural Life amidst Narcos in Northeastern Mexico

Leslie J. Verteramo Chiu and Calum Turvey

No 205447, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: This paper analyzes the effect of drug cartel violence on farmers in Northeastern Mexico. Using tools from the psychology literature on risk perceptions, dual process theory and behavioral economics, we investigate factors correlating with fear among farmers, and how that fear is affecting rural life and production decisions. Farmers' actions in response to risk can be explained under the dual process approach, and the degree of emotional and deliberative response for each action is estimated. We find evidence that drug related violence in Mexico is affecting rural life and production decisions of small holder farmers.

Keywords: Community/Rural/Urban Development; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205447

DOI: 10.22004/ag.econ.205447

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