Are religious farmers more risk taking? Empirical evidence from Ethiopia
2022
Kahsay, Goytom Abraha | Kassie, Workineh Asmare | Medhin, Haileselassie | Hansen, Lars Gårn
There is growing evidence that religiosity affects important socio‐economic outcomes. A potential channel through which religiosity affects these outcomes is by shaping individuals’ risk preferences. We combine a lab‐in‐the‐field experiment, survey, and focus‐group discussions to investigate the effect of religiosity on risk‐taking among rural people in Ethiopia. We find evidence that religious farmers are more risk‐taking. The effect is likely driven by the trust/belief in God as the omniscient and just power in determining outcomes under uncertainty. This is further corroborated by results from follow‐up focus‐group discussions.
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