Impact of Violent Crime on Risk Aversion: Evidence from the Mexican Drug War
By Ryan A. Brown, Verónica Montalva, Duncan C. Thomas, Andrea Velásquez. Review of Economics and Statistics, 2019
112 citations recorded by the source corpus.
Abstract Whereas attitudes toward risk play an important role in many decisions over the life course, factors that affect those attitudes are not fully understood. Using longitudinal survey data collected in Mexico before and during the Mexican war on drugs, we investigate how risk attitudes change with variation in insecurity and uncertainty brought on by unprecedented changes in local-area violent crime. Exploiting the fact that the timing, virulence, and spatial distribution of changes in violent crime were unanticipated, we establish there is a rise in risk aversion spread across the entire local population as local-area violent crime increases.
Subfields: Sociology and Political Science, Soil Science
View Paper: https://www.semanticscholar.org/paper/f10ca7399eeebefd3c444b31a00e98a1980fb2cf
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In Sociology and Political Science
In Soil Science
Citations in the corpus
- The Impact of Violence on Individual Risk Preferences: Evidence from a Natural Experiment (2015, result): “…of the overall impact of civil conflict on the preferences of the population are relatively rare, but our results resonate with recent work by Brown et al. (2015), who find that spikes in drug-related violence increase risk aversion among those not directly involved.6 Finally, our study…”
- Do Risk Preferences Change? Evidence from the Great East Japan Earthquake (2018, unknown): “Similarly, studies on the impact of conflicts or violence also find conflicting results: while some show increased risk aversion (Moya 2012, Kim and Lee 2014, Callen et al. 2014, Jakiela and Ozier 2015, Brown et al. 2017), others find decreased risk aversion (Voors et al. 2012).”