Shaking Things Up: On the Stability of Risk and Time Preferences

Arbeitspapier

We conduct a survey and incentivized lab-in-the-field experimental tasks in Tirana, Albania. While the original purpose of our study was to examine whether and how deep parameters such as time and risk preferences affect the intention to migrate, our study was transformed into a natural experiment owing to two large earthquakes that shook the Tirana area during our data-collection period. These events provide us with a rare opportunity to gather evidence (including a preearthquake control) on the effect of natural disasters on time and risk preferences. We find unambiguous effects towards more risk aversion and impatience for affected individuals. Moreover, as it turns out, the second earthquake amplified the effect of the first one, suggesting that experiences cumulate in their influence on these preferences.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 13084

Classification and Topics

• Classification: Wirtschaft ; Economic Methodology: Other ; Design of Experiments: General ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; International Migration
• Subject: time preferences ; risk preferences ; natural disaster ; Albania ; migration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Beine, Michel ; Charness, Gary ; Dupuy, Arnaud ; Joxhe, Majlinda
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/216396
• Last update: 10.03.2025, 11:45 AM CET