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Does conflict affect preferences? Results from field experiments in Burundi

M. Voorst, E. Nillesen, Philip Verwimp (), Erwin Bulte (), Robert Lensink () and Daan van Soest ()

No 2010_006, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: We use experimental data from 35 randomly selected communities in Burundi to examine the impact of exposure to conflict on social-, risk- and time preferences. These types of preferences are important as they determine people’s propensity to invest and their ability to overcome social dilemmas, so that changes therein foster or hinder economic growth. We find that conflict affects preferences. Individuals that have been exposed to greater levels of violence display more altruistic behavior towards their neighbors, are more risk seeking, and have higher discount rates. Adverse, but temporary, shocks can thus alter savings and investments decisions, and potentially have long-run consequences.

Date: 2010
New Economics Papers: this item is included in nep-afr, nep-cbe, nep-evo and nep-exp
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Published by: ECARES

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Working Paper: Does Conflict affect Preferences? Results from Field Experiments in Burundi (2010) Downloads
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