Violence during Civil War, Risk Preference, and Time Preference: Evidence from North-West Pakistan

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Other Title
  • 内戦下の暴力とリスク・時間選好 : パキスタン北西部の事例より
  • ナイセン カ ノ ボウリョク ト リスク ・ ジカンセン コウ : パキスタン ホクセイブ ノ ジレイ ヨリ

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Abstract

How does the exposure to violence during civil war affect citizenʼs life during the recovery process ? As one of these influences of wartime violence, we analyze citizensʼ time and risk preferences for the case of north-west Pakistan where a decades-long civil war ended and tribal autonomy was converted into the governance by the central state of Pakistan. Using micro data of approximately 2,800 respondents collected in a unique survey conducted in 2018-19, we found that respondents who were exposed to violence during the civil war had higher risk aversion and present bias. The tendency for risk aversion is stronger among those who experienced multiple types of violence and whose family members also suffered from the violence. The correlation of risk aversion/present bias with violence exposure was higher among less educated respondents than among more educated respondents.

Journal

  • 経済研究

    経済研究 71 (4), 317-332, 2020-10-23

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