Risk loving after the storm: A Bayesian-Network study of Hurricane Katrina evacuees
AbstractWe investigate risk preferences of a sample of hurricane Katrina evacuees shortly after they were evacuated and transported to Houston, and another sample from the same population taken a year later. We also consider a third sample of resident Houstonians with demographics similar to the Katrina evacuees. Conventional statistical methods fail to explain a strong risk-loving bias in the first Katrina-evacuees sample. We utilize Bayesian Networks to investigate all relevant conditional distributions for gamble choices, demographic variables, and responses to psychometric questionnaires. We uncover surprising results: Contrary to prior experimental evidence, we find that women in our sample were significantly more risk loving in the first Katrina sample and only mildly more risk averse in the other two samples. We find that gamble choices are best predicted by positive-emotion variables. We therefore explain the risk-loving choices of the first Katrina-evacuees sample by the detected primacy of negative-emotion variables in that sample and explain the latter by traumatic and heightened-stress experiences shortly after the hurricane.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 69 (2009)
Issue (Month): 2 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jebo
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Monash Economics Working Papers archive-01, Monash University, Department of Economics.
- Catherine C. Eckel & Philip J. Grossman, 2002. "Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk," Monash Economics Working Papers archive-03, Monash University, Department of Economics.
- Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
- Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
- Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-30, October.
- Eckel, Catherine C. & Grossman, Philip J., 2008.
"Men, Women and Risk Aversion: Experimental Evidence,"
Handbook of Experimental Economics Results,
- Leonardo Becchetti & Stefano Castriota & Pierluigi Conzo, 2012.
"Calamity, Aid and Indirect Reciprocity: the Long Run Impact of Tsunami on Altruism,"
CEIS Research Paper
239, Tor Vergata University, CEIS, revised 06 Jul 2012.
- Leonardo Becchetti & Stefano Castriota & Pierluigi Conzo, 2012. "Calamity, Aid and Indirect Reciprocity: the Long Run Impact of Tsunami on Altruism," CSEF Working Papers 316, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Charness, Gary & Gneezy, Uri & Kuhn, Michael A., 2013. "Experimental methods: Extra-laboratory experiments-extending the reach of experimental economics," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 93-100.
- Filippin, A. & Crosetto, P., 2014.
"A reconsideration of gender differences in risk attitudes,"
2014-01, Grenoble Applied Economics Laboratory (GAEL).
- Antonio FILIPPIN & Paolo CROSETTO, 2014. "A Reconsideration of Gender Differences in Risk Attitudes," Departmental Working Papers 2014-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Marco Castillo & Michael Carter, 2011. "Behavioral Responses to Natural Disasters," Working Papers 1026, George Mason University, Interdisciplinary Center for Economic Science.
- Lisa Cameron & Manisha Shah, 2013.
"Risk-Taking Behavior in the Wake of Natural Disasters,"
NBER Working Papers
19534, National Bureau of Economic Research, Inc.
- Cameron, Lisa A. & Shah, Manisha, 2012. "Risk-Taking Behavior in the Wake of Natural Disasters," IZA Discussion Papers 6756, Institute for the Study of Labor (IZA).
- Dupas, Pascaline & Robinson, Jonathan, 2012. "The (hidden) costs of political instability: Evidence from Kenya's 2007 election crisis," Journal of Development Economics, Elsevier, vol. 99(2), pages 314-329.
- Alessandro Bucciol & Luca Zarri, 2013. "Financial Risk Aversion and Personal Life History," Working Papers 05/2013, University of Verona, Department of Economics.
- Lionel Page & David A. Savage & Benno Torgler, 2013. "Variation in risk seeking behavior following large losses: A natural experiment," QuBE Working Papers 007, QUT Business School.
- Mohamed Ali Bchir & Marc Willinger, 2013. "Does the exposure to natural hazards affect risk and time preferences? Some insights from a field experiment in Perú," Working Papers 13-04, LAMETA, Universtiy of Montpellier, revised Mar 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.