Violence, psychological trauma, and risk attitudes: Evidence from victims of violence in Colombia

• 成果类型: Article
• 署名作者: Moya, Andres
• 署名单位: Universidad de los Andes (Colombia)
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2017.11.001
• 发表日期: 2018
• 页码: 15-27
• 关键词: Risk aversion; VIOLENCE; Psychological trauma; colombia

摘要

Traumatic experiences can alter individuals' behavior and deplete their ability to make economic decisions. In this article, I analyze the effects of violence on risk attitudes. For this purpose, I sampled a group of victims of violence in Colombia and collected data on the severity and temporal proximity of their exposure to violence and on their symptoms of psychological trauma. I find that more severe violence brings about higher levels of risk aversion in the gains and ambiguity domains but that the behavioral effect is not permanent. I also find that the effect is driven by severe anxiety disorders, which is consistent with studies in psychology. The results suggest that violence can affect poverty dynamics through a behavioral channel.