Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published November 10, 2011 | Submitted + Supplemental Material
Report Open

Poverty, politics, and preferences: Field experiments and survey data from Vietnam

Abstract

We conducted field experiments to investigate how wealth, political history, occupation, and other demographic variables (from a comprehensive earlier household survey) are correlated with risk, time discounting and trust in Vietnam. Our experiments suggest risk and time preferences depend on the stage of economic development. In wealthier villages, people are less loss-averse and more patient. Our research also shows people who participate in ROSCAs (rotating credit associations) are more patient than non-participant, but those who participate in bidding ROSCAs are less patient and more risk averse than those who participate in fixed ROSCAs. Results from a trust game demonstrate both positive and negative effects of communism. Villagers in the South tend to invest more in low-income partners without expecting repayment. On the other hand, people in the north are more trustworthy but do not pass on more money to the poor. Our findings also suggest market activities, like starting a small trade business, are correlated with trust and trustworthiness. We also contribute to experimental methodology by using choices that separate different aspects of risk aversion and time preferences in behavioral economics specifications.

Attached Files

Submitted - Vietnam_1_.pdf

Supplemental Material - Appendix_1_.pdf

Files

Appendix_1_.pdf
Files (4.8 MB)
Name Size Download all
md5:e90859235aa5e67fd86b4baef9b6acd8
3.8 MB Preview Download
md5:3d2909963c3d0261b96c942fc92cfe3a
983.3 kB Preview Download

Additional details

Created:
August 19, 2023
Modified:
October 23, 2023