Does natural disaster influence people׳s risk preference and trust? An experiment from cyclone prone coast of Bangladesh
Year: 2014
Type: article
Abstract: Natural catastrophic events may have enormous negative effects on economic growth. People affected by the disaster might be risk averse because of anxiety about the future uncertainty of economic returns. The purpose of this empirical study is to highlight the effect of natural disasters (specifically coastal cyclonic storm surges) on individuals׳ risk preference and level of trust. This study also aims to disentangle risk propensity from trust. It reveals that natural disasters can significantly reduce people׳s risk-taking attitudes, whereas the catastrophic events have no influence on trusting behavior. The study suggests that risk attitudes are significantly negatively correlated with trust.
Author: Dewan A. Ahsan
Institution: University of Southern Denmark
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2012275363