Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam

Arnaud Reynaud and Cécile Aubert
Additional contact information
Arnaud Reynaud: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Post-Print from HAL

Abstract: We conducted an artefactual field experiment in Vietnam to investigate whether and how experiencing a natural disaster affects individual attitudes toward risks. Using experimental and real household data, we show that households in villages affected by a flood in recent years exhibit more risk aversion, compared with individuals living in similar but unaffected villages. Interestingly, this result holds for the loss domain, but not the gain domain. In line with Prospect Theory, Vietnamese households distort probabilities. The distortion is related to aid received and social networks participation, but is unrelated to flood experience.

Keywords: Risk preferences; Non-expected utility; Flood; Vietnam; Field experiment (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-sea, nep-tra and nep-upt
Note: View the original document on HAL open archive server: https://hal.science/hal-03050685v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published in Geneva Risk and Insurance Review, 2020, 45 (1), pp.36-74. ⟨10.1057/s10713-019-00044-w⟩

Downloads: (external link)
https://hal.science/hal-03050685v1/document (application/pdf)

Related works:
Journal Article: Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam (2020)
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:hal:journl:hal-03050685

DOI: 10.1057/s10713-019-00044-w

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().