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Does Conflict affect Preferences? Results from Field Experiments in Burundi

Author

Listed:
  • Maarten Voors

    () (Wageningen University)

  • Eleonora Nillesen

    () (Wageningen University)

  • Philip Verwimp

    () (Fund for Scientific Research – Flanders, University of Antwerp)

  • Erwin Bulte

    () (Wageningen University)

  • Robert Lensink

    () (Wageningen University)

  • Daan van Soest

    () (University of Groningen)

Abstract

We use experimental data from 35 randomly selected communities in Burundi to examine the impact of exposure to conflict on social-, risk- and time preferences. These types of preferences are important as they determine people’s propensity to invest and their ability to overcome social dilemmas, so that changes therein foster or hinder economic growth. We find that conflict affects preferences. Individuals that have been exposed to greater levels of violence display more altruistic behavior towards their neighbors, are more risk seeking, and have higher discount rates. Adverse, but temporary, shocks can thus alter savings and investments decisions, and potentially have long-run consequences.

Suggested Citation

  • Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," HiCN Working Papers 71, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:71
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    Cited by:

    1. Carlos Bozzoli & Tilman Brück & Tony Muhumuza, 2012. "Movers or Stayers? Understanding the Drivers of IDP Camp Decongestion during Post-Conflict Recovery in Uganda," Discussion Papers of DIW Berlin 1197, DIW Berlin, German Institute for Economic Research.
    2. Catherine Ragasa & Jennifer Golan, 2014. "The role of rural producer organizations for agricultural service provision in fragile states," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 537-553, September.
    3. repec:tse:wpaper:27881 is not listed on IDEAS
    4. Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2013. "Seeds of distrust: conflict in Uganda," Journal of Economic Growth, Springer, vol. 18(3), pages 217-252, September.
    5. Becchetti, Leonardo & Castriota, Stefano & Conzo, Pierluigi, 2017. "Disaster, Aid, and Preferences: The Long-run Impact of the Tsunami on Giving in Sri Lanka," World Development, Elsevier, vol. 94(C), pages 157-173.
    6. Tilman Brück & Fernanda Llussá & José Tavares, 2010. "Perceptions, Expectations, and Entrepreneurship: The Role of Extreme Events," Discussion Papers of DIW Berlin 1093, DIW Berlin, German Institute for Economic Research.
    7. Jacopo Bonan & Oliver Dagnelie & Philippe LeMay-Boucher & Michel Tenikue, 2012. "Is it all about Money? A Randomized Evaluation of the Impact of Insurance Literacy and Marketing Treatments on the Demand for Health Microinsurance in Senegal," Working Papers 216, University of Milano-Bicocca, Department of Economics, revised Jan 2012.
    8. Alessandra Cassar & Pauline Grosjean & Sam Whitt, 2013. "Legacies of violence: trust and market development," Journal of Economic Growth, Springer, vol. 18(3), pages 285-318, September.
    9. Sacks, Audrey & Larizza, Marco, 2012. "Why quality matters : rebuilding trustworthy local government in post-conflict Sierra Leone," Policy Research Working Paper Series 6021, The World Bank.
    10. Fehr, Ernst & Hoff, Karla, 2011. "Tastes, Castes, and Culture: The Influence of Society on Preferences," IZA Discussion Papers 5919, Institute for the Study of Labor (IZA).
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    12. Patricia Justino, 2012. "Shared Societies and Armed Conflict: Costs, Inequality and the Benefits of Peace," HiCN Working Papers 125, Households in Conflict Network.
    13. Tilman Brück & Patricia Justino & Philip Verwimp & Alexandra Avdeenko, 2010. "Identifying Conflict and Violence in Micro-Level Surveys," Economics of Security Working Paper Series 38, DIW Berlin, German Institute for Economic Research.
    14. Patricia Justino & Ivan Cardona & Rebecca Mitchell & Catherine Müller, 2012. "Quantifying the Impact of Women’s Participation in Post-Conflict Economic Recovery," HiCN Working Papers 131, Households in Conflict Network.
    15. Delavande, Adeline & Zafar, Basit, 2015. "Stereotypes and Madrassas: Experimental evidence from Pakistan," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 247-267.
    16. Olga Shemyakina & Anke Plagnol, 2013. "Subjective Well-Being and Armed Conflict: Evidence from Bosnia-Herzegovina," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1129-1152, September.
    17. Eleonora Nillesen & Philip Verwimp, 2009. "Grievance, Commodity Prices and Rainfall: A Village-level Analysis of Rebel Recruitment in Burundi," HiCN Working Papers 58, Households in Conflict Network.
    18. repec:col:000089:012224 is not listed on IDEAS
    19. Patricia Justino & Marinella Leone & Paola Salardi, 2011. "Education and Conflict Recovery: The Case of Timor Leste," HiCN Working Papers 100, Households in Conflict Network.
    20. Dean Spears, 2013. "Poverty and probability: aspiration and aversion to compound lotteries in El Salvador and India," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 263-284, September.
    21. Nathalie Méndez Méndez, 2015. "Institucionalismo cognitivo, capital social y la construcción de la paz en Colombia," REVISTA ECONOMÍA & REGIÓN, UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR, vol. 9(1), pages 67-90, June.
    22. 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.
    23. 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;Western Agricultural Economics Association.
    24. Baddeley, M., 2011. "Civil War and Human Development: Impacts of Finance and Financial Infrastructure," Cambridge Working Papers in Economics 1127, Faculty of Economics, University of Cambridge.
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    civil war; preferences; field experiments; Africa;

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