Violent Conflict and Behavior: A Field Experiment in Burundi

Author:

Voors Maarten J1,Nillesen Eleonora E. M2,Verwimp Philip3,Bulte Erwin H4,Lensink Robert5,Soest Daan P. Van6

Affiliation:

1. Development Economics Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, Netherlands and Department of Land Economy, University of Cambridge.

2. Development Economics Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, Netherlands.

3. Solvay Brussels School of Economics and Management and ECARES, and Center Emile Bernheim, Université Libre de Bruxelles, Franklin Rooseveltlaan 42, 1050 Brussels, Belgium.

4. Development Economics Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, Netherlands, and Department of Economics, Tilburg University.

5. Department of Economics, Econometrics and Finance, University of Groningen, Nettelbosje 2, 9747 AE, Groningen, Netherlands, and Development Economics Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, Netherlands.

6. Department of Spatial Economics and IVM, VU University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, Netherlands, and Department of Economics and CentER, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, Netherlands.

Abstract

We use a series of field experiments in rural Burundi to examine the impact of exposure to conflict on social, risk, and time preferences. We find that conflict affects behavior: individuals exposed to violence display more altruistic behavior towards their neighbors, are more risk-seeking, and have higher discount rates. Large adverse shocks can thus alter savings and investments decisions, and potentially have long-run consequences—even if the shocks themselves are temporary. (JEL C93, D12, D74, 012, 017, 018)

Publisher

American Economic Association

Subject

Economics and Econometrics

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