Long Run Impact of Traumatic Experience on Attitudes toward Risk : Study of Korean War and Its Impact on Risk Aversion

@inproceedings{Kim2012LongRI,
  title={Long Run Impact of Traumatic Experience on Attitudes toward Risk : Study of Korean War and Its Impact on Risk Aversion},
  author={Young-il Kim and Jungmin Lee},
  year={2012}
}
A number of previous studies show that short run impact of traumatic experience on risk attitudes. The direction of impact is mixed, as short run emotional effect dominates measured alterations in risk attitudes. This paper studies the long run impact of traumatic event on risk attitude formation, after the short run emotional effect dissipates by investigating if early childhood exposure to a war affects risk attitudes, using a survey data from South Korea. We use hypothetical lottery… CONTINUE READING