Property rights and risk aversion: evidence from a titling program

Fernando M. Aragón, Oswaldo Molina, Ingo W. Outes-León

Research output: Contribution to journalArticle in a journalpeer-review

5 Scopus citations


Evidence suggests that major events, like war or natural disasters, affect risk attitudes. This paper shows that similar effects can also be associated with institutional changes, such as improved property rights. Using the case of a large titling program in Peru, we find that the program reduced risk aversion. The effects are sizable, persistent, and seem to be driven by improved security of tenure. These results highlight an understudied channel through which property rights could shape economic outcomes.
Original languageEnglish
Article number105020
JournalWorld Development
StatePublished - Oct 2020

Bibliographical note

Publisher Copyright:
© 2020 Elsevier Ltd


  • Property rights
  • Risk aversion
  • Security of tenure


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