Abstract
We use a series of field experiments in rural Burundi to examine the impact of exposure to conflict on social, risk, and time preferences. We find that conflict affects behavior: individuals exposed to violence display more altruistic behavior towards their neighbors, are more risk-seeking, and have higher discount rates. Large adverse shocks can thus alter savings and investments decisions, and potentially have long-run consequences—even if the shocks themselves are temporary.
Original language | English |
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Pages (from-to) | 941-964 |
Journal | American Economic Review |
Volume | 102 |
Issue number | 2 |
Publication status | Published - 2012 |