@TechReport{iza:izadps:dp11901, author={Kettlewell, Nathan and Rijsdijk, Fruhling and Siribaddana, Sisira and Sumathipala, Athula and Tymula, Agnieszka and Zavos, Helena and Glozier, Nicholas}, title={Civil War, Natural Disaster and Risk Preferences: Evidence from Sri Lankan Twins}, year={2018}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={11901}, url={https://www.iza.org/index.php/publications/dp11901}, abstract={We estimate whether risk preferences are affected by traumatic events by using a unique survey of Sri Lankan twins which contains information on individual's exposure to the 2004 Indian Ocean Tsunami, participation as a combatant in the civil war, validated measures of mental health and risk preferences, and a rich set of control variables. Our estimation strategy utilises variation in experiences within twin pairs and allows us to explore whether preference changes are driven by wealth shocks and/or changes in mental health. We find that both events lead to less risk aversion, a result that is not driven by mental health or wealth changes.}, keywords={civil war;natural disaster;risk preferences;twin study}, }