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

Abdellaoui, M. 2000. Parameter-free elicitation of utility and probability weighting functions. Management Science 46 (11): 1385–1512. Abdellaoui, M., H. Bleichrodt, and O. L’Haridon. 2008. A tractable method to measure utility and loss aversion under prospect theory. Journal of Risk and Uncertainty 36 (3): 245–266. Abdellaoui, M., H. Bleichrodt, O. L’Haridon, and D. van Dolder. 2016. Measuring loss aversion under ambiguity: A method to make prospect theory completely observable. Journal of Risk and Uncertainty 52 (1): 1–20. Ali Bchir, M. and M. Willinger (2013). Does the exposure to natural hazards affect risk and time preferences? Some insights from a field experiment in Peru. LAMETA working paper serie 2013. University of Montpellier, France. Andersen, S., G.W. Harrison, M.I. Lau, and E.E. Rutström. 2008. Lost in state space: Are preferences stable? International Economic Review 49 (3): 1091–1112. Andrabi, T. and J. Das (2010). In aid we trust: Hearts and minds and the Pakistan earthquake of 2005. Policy Research Working Paper 5440, The World Bank. Azevedo, C.D., J.A. Herriges, and C.L. Kling. 2003. Combining revealed and stated preferences: Consistency tests and their interpretations. American Journal of Agricultural Economics 85 (3): 525–537. Baucells, M., and A. Villasís. 2010. Stability of risk preferences and the reflection effect of prospect theory. Theory and Decision 68 (1): 193–211. Beaud, M., and M. Willinger. 2015. Are people risk vulnerable? Management Science 61 (3): 624–636. Becchetti, L., S. Castriota, and P. Conzo. 2017. Disaster, aid, and preferences: The long-run impact of the tsunami on giving in sri lanka. World Development 94 (C): 157–173. Binswanger, H.P. 1980. Attitudes toward risk: Experimental measurement in rural India. American Journal of Agricultural Economics 62 (3): 395–407. Booij, A.S., B. van Praag, and G. van de Kuilen. 2010. A parametric analysis of prospect theory’s functionals for the general population. Theory and Decision 68 (1–2): 115–148. Bruhin, A., H. Fehr-Duda, and T. Epper. 2010. Risk and rationality: Uncovering heterogeneity in probability distortion. Econometrica 78 (4): 1375–1412. Brunette, M., J. Foncel, and E.N. Kéré. 2017. Attitude towards risk and production decision: An empirical analysis on french private forest owners. Environmental Modeling and Assessment 22 (6): 563–576. Bubeck, P., W.J.W. Botzen, and J.C.J.H. Aerts. 2012. A review of risk perceptions and other factors that influence flood mitigation behavior. Risk Analysis 32 (9): 1481–1495. Callen, M. 2015. Catastrophes and time preference: Evidence from the Indian Ocean Earthquake. Journal of Economic Behavior & Organization 118: 199–214. Cameron, L., and M. Shah. 2015. Risk-taking behavior in the wake of natural disasters. Journal of Human Resources 50 (2): 484–515. Cassar, A., A. Healy, and C. von Kessler. 2017. Trust, risk, and time preferences after a natural disaster: Experimental evidence from Thailand. World Development 94: 90–105. Castillo, M., R. Petrie, and M. Torero. 2010. On the preferences of principals and agents. Economic Inquiry 48 (2): 266–273. Chuang, Y., and L. Schechter. 2015. Stability of experimental and survey measures of risk, time, and social preferences: A review and some new results. Journal of Development Economics 117: 151–170. Dang Nguyen, A. 2009. Household registration system and the well-beings of rural-to-urban migrants. Vietnam’s Socio-economic Development: A Social Science Review 59 (9): 75–80. Dave, C., C.C. Eckel, C.A. Johnson, and C. Rojas. 2010. Eliciting risk preferences: When is simple better? Journal of Risk & Uncertainty 41 (3): 219–243. De Martino, B., C.F. Camerer, and R. Adolphs. 2010. Amygdala damage eliminates monetary loss aversion. Proceedings of the National Academy of Sciences 107 (8): 3788–3792. Dionne, G., and L. Eeckhoudt. 1985. Self-insurance, self-protection and increased risk aversion. Economics Letters 17 (1–2): 39–42. Dohmen, T., A. Falk, D. Huffman, and U. Sunde. 2012. The intergenerational transmission of risk and trust attitudes. Review of Economic Studies 79 (2): 645–677. Dohmen, T., A. Falk, D. Huffman, U. Sunde, J. Schupp, and G.G. Wagner. 2011. Individual risk attitudes: Measurement, determinants, and behavioral consequences. Journal of the European Economic Association 9 (3): 522–550. Eckel, C.C., M.A. El-Gamal, and R.K. Wilson. 2009. Risk loving after the storm: A Bayesian-network study of Hurricane Katrina evacuees. Journal of Economic Behavior & Organization 69 (2): 110–124. Eckel, C.C., and P.J. Grossman. 2002. Sex differences and statistical stereotyping in attitudes toward financial risk. Evolution and Human Behavior 23 (4): 281–295. Eckel, C.C., and P.J. Grossman. 2008. Forecasting risk attitudes: An experimental study using actual and forecast gamble choices. Journal of Economic Behavior & Organization 68 (1): 1–7. Eeckhoudt, L., C. Gollier, and H. Schlesinger. 1996. Changes in background risk and risk-taking behavior. Econometrica 64 (3): 683–89. Ehrlich, I., and G.S. Becker. 1972. Market insurance, self-insurance, and self-protection. Journal of Political Economy 80 (4): 623–648. Engle-Warnick, J., J. Escobal, and S. Laszlo. 2009. How do additional alternatives affect individual choice under uncertainty? Canadian Journal of Economics 42 (1): 113–140. Gollier, C., and J.W. Pratt. 1996. Risk vulnerability and the tempering effect of background risk. Econometrica 64 (5): 1109–1123. Gonzalez, R., and G. Wu. 1999. On the shape of the probability weighting function. Cognitive Psychology 38 (1): 129–166. Harrison, G.W., and E.E. Rutström. 2008. Risk aversion in the laboratory. Research in Experimental Economics 12: 41–196. Hirabayashi, Y., R. Mahendran, S. Koirala, L.K.D. Yamazaki, S. Watanabe, H. Kim, and S. Kanaee. 2013. Global flood risk under climate change. Nature Climate Change 3: 816–821. Ho, M.-C., D. Shaw, S. Lin, and Y.-C. Chiu. 2008. How do disaster characteristics influence risk perception? Risk Analysis 28 (3): 635–643. Hopland, A.O., E. Matsen, and B. Strom. 2016. Income and choice under risk. Journal of Behavioral and Experimental Finance 12: 55–64. Kahneman, D., and A. Tversky. 1979. Prospect theory: An analysis of decision under risk. Econometrica 47 (2): 263–291. Kimball, M.S. 1993. Standard risk aversion. Econometrica 61 (3): 589–611. Knuth, D., D. Kehl, L. Hulse, and S. Schmidt. 2014. Risk perception, experience, and objective risk: A cross-national study with European emergency survivors. Risk Analysis 34 (7): 1286–1298. Levin, I.P., and S.S. Hart. 2003. Risk preferences in young children: Early evidence of individual differences in reaction to potential gains and losses. Journal of Behavioral Decision Making 16 (5): 397–413. Levin, I.P., G. Xue, J.A. Weller, M. Reimann, M. Lauriola, and A. Bechara. 2012. A neuropsychological approach to understanding risk-taking for potential gains and losses. Frontiers in Neuroscience 6: 15. Li, J.-Z., S. Li, and H. Liu. 2011. How has the Wenchuan earthquake influenced people’s intertemporal choices? Journal of Applied Social Psychology 41 (11): 2739–2752. Li, J.-Z., S. Li, W.-Z. Wang, L.-L. Rao, and H. Liu. 2011. Are people always more risk averse after disasters? Surveys after a heavy snow-hit and a major earthquake in China in 2008. Applied Cognitive Psychology 25 (1): 104–111. Liu, E.M. 2013. Time to change what to sow: Risk preferences and technology adoption decisions of cotton farmers in China. Review of Economics and Statistics 95 (4): 1386–1403. Loewenstein, G.F., E.U. Weber, C.K. Hsee, and N. Welch. 2001. Risk as feelings. Psychological Bulletin 127 (2): 267–286. Mai, C.V., M.J. Stive, and P.H. VanGelder. 2009. Coastal protection strategies for the red river delta. Journal of Coastal Research 25 (1): 105–116. Nguyen-Hoang, P., and J. McPeak. 2010. Leaving or staying: Inter-provincial migration in vietnam. Asia and Pacific Migration Journal 19 (4): 473–500. Page, L., D.A. Savage, and B. Torgler. 2014. Variation in risk seeking behaviour following large losses: A natural experiment. European Economic Review 71: 121–131. Pilarczyk, K.W., and N.S. Nuoi. 2005. Experience and practices on flood control in Vietnam. Water International 30 (1): 114–122. Quiggin, J. 2003. Background risk in generalized expected utility theory. Economic Theory 22 (3): 607–611. Reynaud, A., C. Aubert, and M.-H. Nguyen. 2013. Living with floods: Protective behaviours and risk perception of Vietnamese households. Geneva Papers on Risk and Insurance Issues and Practice 38: 547–579. Reynaud, A., and M.-H. Nguyen. 2016. Valuing flood risk reductions. Environmental Modeling & Assessment 21 (5): 603–617. Reynaud, A., M.-H. Nguyen, and C. Aubert. 2018. Is there a demand for flood insurance in Vietnam? Results from a choice experiment. Environmental Economics and Policy Studies 20 (3): 593–617. Said, F., U. Afzal, and G. Turner. 2015. Risk taking and risk learning after a rare event: Evidence from a field experiment in Pakistan. Journal of Economic Behavior & Organization 118: 167–183. Samphantharak, K. and S. Chantarat (2015). The effects of natural disasters on households’ preferences and behaviours: Evidence from thai farmers during and after the 2011 mega flood. Disaster Risks, Social Preferences, and Policy Effects: Field Experiments in Selected ASEAN and East Asian Coutries, 57–84. Schoemaker, P. 1990. Are risk-attitudes related across domains and response modes? Management Science 36 (12): 1451–1463. Scott, J.C., G.E. Matt, K.M. Wrocklage, C. Crnich, J. Jordan, S.M. Southwick, J.H. Krystal, and B.C. Schweinsburg. 2015. A quantitative meta-analysis of neurocognitive functioning in posttraumatic stress disorder. Psychological Bulletin 141 (1): 105. Shin, L.M., S.L. Rauch, and R.K. Pitman. 2006. Amygdala, medial prefrontal cortex, and hippocampal function in ptsd. Annals of the New York Academy of Sciences 1071 (1): 67–79. SwissRe, 2012. World insurance in 2011—non-life ready for take-off. Sigma 3: 1–40. Tanaka, T., C. Camerer, and Q. Nguyen. 2010. Risk and time preferences: Linking experimental and household survey data from vietnam. American Economic Review 100 (1): 557–571. Townsend, R.M. 1994. Risk and insurance in village India. Econometrica 62 (3): 539–591. Tversky, A., and D. Kahneman. 1992. Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty 5 (4): 297–323. von Gaudecker, H.-M., A. van Soest, and E. Wengstrom. 2011. Heterogeneity in risky choice behavior in a broad population. American Economic Review 101 (2): 664–694. Voors, M.J., E.E. Nillesen, P. Verwimp, E.H. Bulte, R. Lensink, and D.P. Van Soest. 2012. Violent conflict and behavior: A field experiment in Burundi. American Economic Review 102 (2): 941–964. Weber, E. U. and J. S. Ancker (2010). Risk perceptions and risk attitudes in the United States and Europe. The Reality of Precaution: Comparing Approaches to Risk Regulation in the United States and Europe. J. B. Wiener, M. D. Rogers, P. H. Sand, and J. K. Hammitt (eds). Ch. 18, Taylor and Francis. Weller, J.A., I.P. Levin, B. Shiv, and A. Bechara. 2007. Neural correlates of adaptive decision making for risky gains and losses. Psychological Science 18 (11): 958–964. WorldBank (2005). Natural disaster hotspots: A global risk analysis. Disaster Risk Management Series No. 5, Hazard Management Unit, The World Bank. WorldBank (2010). Weathering the Storm: Options for Disaster Risk Financing in Vietnam. The World Bank. Yesuf, M., and R.A. Bluffstone. 2009. Poverty, risk aversion, and path dependence in low-income countries: Experimental evidence from Ethiopia. American Journal of Agricultural Economics 91 (4): 1022–1037.