Civil War, Natural Disaster and Risk Preferences: Evidence from Sri Lankan Twins
Nathan Kettlewell (),
Fruhling Rijsdijk (),
Athula Sumathipala (),
Helena Zavos () and
Nicholas Glozier ()
Additional contact information
Fruhling Rijsdijk: King's College London
Sisira Siribaddana: Rajarata University of Sri Lanka
Athula Sumathipala: Keele University
Helena Zavos: King's College London
Nicholas Glozier: University of Sydney
No 11901, IZA Discussion Papers from Institute of Labor Economics (IZA)
We estimate whether risk preferences are affected by traumatic events by using a unique survey of Sri Lankan twins which contains information on individual's exposure to the 2004 Indian Ocean Tsunami, participation as a combatant in the civil war, validated measures of mental health and risk preferences, and a rich set of control variables. Our estimation strategy utilises variation in experiences within twin pairs and allows us to explore whether preference changes are driven by wealth shocks and/or changes in mental health. We find that both events lead to less risk aversion, a result that is not driven by mental health or wealth changes.
Keywords: civil war; natural disaster; risk preferences; twin study (search for similar items in EconPapers)
JEL-codes: D74 D81 D91 Q54 (search for similar items in EconPapers)
Pages: 42 pages
New Economics Papers: this item is included in nep-dev, nep-env and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11901
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().