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Do Risk Preferences Change? Evidence from Panel Data before and after the Great East Japan Earthquake / Chie Hanaoka, Hitoshi Shigeoka, Yasutora Watanabe.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Hanaoka, Chie.
Contributor:
National Bureau of Economic Research.
Shigeoka, Hitoshi.
Watanabe, Yasutora.
Series:
Working Paper Series (National Bureau of Economic Research) no. w21400.
NBER working paper series no. w21400
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2015.
Summary:
We investigate whether individuals' risk preferences change after experiencing a natural disaster, specifically, the 2011 Great East Japan Earthquake. Exploiting the panels of nationally representative surveys on risk preferences, we find that men who experienced greater intensity of the Earthquake became more risk tolerant after the Earthquake. Furthermore, these men gamble more, which is consistent with the direction of changes in risk preferences. We find no such pattern for women. Finally, the effects on men's risk preferences are persistent even five years after the Earthquake at almost the same magnitude as those shortly after the Earthquake.
Notes:
Print version record
July 2015.

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