Aubert, Cécile and Reynaud, Arnaud (2020) Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam. Geneva Risk and Insurance Review, vol. 45 (n° 1). pp. 36-74.

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Identification Number : 10.1057/s10713-019-00044-w


We conducted an artefactual field experiment in Vietnam to investigate whether and how experiencing a natural disaster affects individual attitudes toward risks. Using experimental and real household data, we show that households in villages affected by a flood in recent years exhibit more risk aversion, compared with individuals living in similar but unaffected villages. Interestingly, this result holds for the loss domain, but not the gain domain. In line with Prospect Theory, Vietnamese households distort probabilities. The distortion is related to aid received and social networks participation, but is unrelated to flood experience.

Item Type: Article
Language: English
Date: March 2020
Refereed: Yes
Uncontrolled Keywords: Risk preferences, Non-expected utility, Flood, Vietnam, Field experiment
JEL Classification: C93 - Field Experiments
D9 - Intertemporal Choice and Growth
Q54 - Climate; Natural Disasters
Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 13 Jan 2020 14:16
Last Modified: 17 Apr 2024 06:18
OAI Identifier:
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