EconPapers    
Economics at your fingertips  
 

RISK AVERSION AND ENTREPRENEURSHIP: NEW EVIDENCE EXPLOITING EXPOSURE TO MASSIVE EARTHQUAKES IN ITALY

Guido de Blasio (), Maria De Paola (), Vincenzo Scoppa () and Samuele Poy ()

No 201901, Working Papers from Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF

Abstract: This paper investigates the impact of risk attitudes on the decision to become an entrepreneur. In contrast to previous research, we handle endogeneity issues relying on an instrumental variables strategy considering as a source of exogenous variation in risk aversion the early exposure to a massive earthquake. Using several waves of the Bank of Italy Survey of Household Income and Wealth (SHIW), we find that individuals experimenting an earthquake become significantly more risk averse. Second-stage estimates show that risk aversion has a significant negative impact on the probability of becoming an entrepreneur.

Keywords: Entrepreneurship; Risk Attitudes; Natural Disasters; Instrumental Variables (search for similar items in EconPapers)
JEL-codes: D81 D91 L26 C36 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-eur, nep-upt and nep-ure
Date: 2019-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ecostat.unical.it/RePEc/WorkingPapers/WP01_2019.pdf First version, 2019-01 (application/pdf)

Related works:
Working Paper: Risk Aversion and Entrepreneurship: New Evidence Exploiting Exposure to Massive Earthquakes in Italy (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:clb:wpaper:201901

Access Statistics for this paper

More papers in Working Papers from Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania", Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Giovanni Dodero ().

 
Page updated 2019-10-16
Handle: RePEc:clb:wpaper:201901