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Determinants of risk aversion over time: Experimental evidence from rural Thailand


  • Sakha, Sahra


We use a repeated incentivized risk experiment in rural Thailand to test determinants of changes in the level of individual risk aversion over time. We find that risk aversion significantly changes between 2008 and 2013 as a result of macro- and micro-level shocks. Strong macroeconomic recovery following the 2007/08 financial crisis makes people less risk averse. On the micro-level, we observe that negative economic and agricultural shocks increase risk aversion and that covariate shocks dominate idiosyncratic shocks. Subjective perceptions of well-being and expectations also play a role but do not drive the macro-micro determinants of changes in individual risk aversion.

Suggested Citation

  • Sakha, Sahra, 2019. "Determinants of risk aversion over time: Experimental evidence from rural Thailand," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 80(C), pages 184-198.
  • Handle: RePEc:eee:soceco:v:80:y:2019:i:c:p:184-198
    DOI: 10.1016/j.socec.2019.03.008

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    Cited by:

    1. Massimo Filippini & Nilkanth Kumar & Suchita Srinivasan, 2021. "Behavioral Anomalies and Fuel Efficiency: Evidence from Motorcycles in Nepal," CER-ETH Economics working paper series 21/353, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    2. Haile, Kaleab K. & Nillesen, Eleonora & Tirivayi, Nyasha, 2020. "Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia," World Development, Elsevier, vol. 130(C).

    More about this item


    Risk aversion; Lab-in-the-field experiment; Shocks; Socio-economic determinants;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development


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