Abstract
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 language | English |
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Article number | 105020 |
Journal | World Development |
Volume | 134 |
DOIs | |
State | Published - Oct 2020 |
Bibliographical note
Publisher Copyright:© 2020 Elsevier Ltd
Keywords
- Property rights
- Risk aversion
- Security of tenure