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Perception and Action in a Conflict Zone: a Study of Rural Economy and Rural Life amidst Narcos in Northeastern Mexico

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  • Verteramo Chiu, Leslie J.
  • Turvey, Calum G.

Abstract

This paper analyzes the effect of drug cartel violence on farmers in Northeastern Mexico. Using tools from the psychology literature on risk perceptions, dual process theory and behavioral economics, we investigate factors correlating with fear among farmers, and how that fear is affecting rural life and production decisions. Farmers' actions in response to risk can be explained under the dual process approach, and the degree of emotional and deliberative response for each action is estimated. We find evidence that drug related violence in Mexico is affecting rural life and production decisions of small holder farmers.

Suggested Citation

  • Verteramo Chiu, Leslie J. & Turvey, Calum G., 2015. "Perception and Action in a Conflict Zone: a Study of Rural Economy and Rural Life amidst Narcos in Northeastern Mexico," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205447, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205447
    DOI: 10.22004/ag.econ.205447
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