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The Effect of Risk Preferences on Household Use of Water Treatment

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  • Magda Tsaneva

Abstract

This paper uses Mexican household data on water treatment to provide empirical evidence on the relationship between risk preferences and use of preventive health measures. The main finding is that in households with children, more risk-averse mothers are more likely to treat the water the household consumes. This result suggests that while households may face external constraints on their behaviour, personal preferences are also determinants of their choices.

Suggested Citation

  • Magda Tsaneva, 2013. "The Effect of Risk Preferences on Household Use of Water Treatment," Journal of Development Studies, Taylor & Francis Journals, vol. 49(10), pages 1427-1435, October.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:10:p:1427-1435
    DOI: 10.1080/00220388.2013.790960
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    Cited by:

    1. Veronica Sovero, 2018. "Risk preferences and child investments: evidence from Mexico," Review of Economics of the Household, Springer, vol. 16(4), pages 1027-1047, December.
    2. Champ, Patricia A. & Meldrum, James R. & Brenkert-Smith, Hannah & Warziniack, Travis W. & Barth, Christopher M. & Falk, Lilia C. & Gomez, Jamie B., 2020. "Do actions speak louder than words? Comparing the effect of risk aversion on objective and self-reported mitigation measures," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 301-313.
    3. Kalwij, Adriaan, 2023. "Risk preferences, preventive behaviour, and the probability of a loss: Empirical evidence from the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 334(C).

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