Effects of the Covid-19 and natural agricultural shocks on preferences of farmers
Abstract It is imperative to examine how different negative shocks influence preferences because preferences influence micro level decisions that provide foundations for macro-level outcomes. We contribute to this domain by reporting an incentivized field experiment that examined the effects of agri...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-02-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-04421-x |
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| author | Hamza Umer Takashi Kurosaki |
| author_facet | Hamza Umer Takashi Kurosaki |
| author_sort | Hamza Umer |
| collection | DOAJ |
| description | Abstract It is imperative to examine how different negative shocks influence preferences because preferences influence micro level decisions that provide foundations for macro-level outcomes. We contribute to this domain by reporting an incentivized field experiment that examined the effects of agricultural income shocks driven by either the Covid-19 or other natural calamities on preferences (risk-taking, impatience, generosity and fairness) of Pakistani farmers. We find that the Covid-19 shock reduced impatience and generosity while the natural shock increased risk-aversion. Our findings suggest that despite having a similar impact on farmers’ agricultural income, the two shocks influence a different set of preferences, and hence, we need to measure them both to identify their precise impact on preferences. Overall, these results offer new information about the relative impacts of the Covid-19 and natural shocks on preferences and help us understand the wealth and age-based heterogeneous effects of these shocks. |
| format | Article |
| id | doaj-art-1e4f0639c4be490b8119c2347ff741ba |
| institution | Kabale University |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-1e4f0639c4be490b8119c2347ff741ba2025-02-09T12:25:43ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-02-0112111310.1057/s41599-025-04421-xEffects of the Covid-19 and natural agricultural shocks on preferences of farmersHamza Umer0Takashi Kurosaki1Hitotsubashi Institute for Advanced Study (HIAS)/Institute of Economic Research (IER), Hitotsubashi UniversityInstitute of Economic Research (IER), Hitotsubashi UniversityAbstract It is imperative to examine how different negative shocks influence preferences because preferences influence micro level decisions that provide foundations for macro-level outcomes. We contribute to this domain by reporting an incentivized field experiment that examined the effects of agricultural income shocks driven by either the Covid-19 or other natural calamities on preferences (risk-taking, impatience, generosity and fairness) of Pakistani farmers. We find that the Covid-19 shock reduced impatience and generosity while the natural shock increased risk-aversion. Our findings suggest that despite having a similar impact on farmers’ agricultural income, the two shocks influence a different set of preferences, and hence, we need to measure them both to identify their precise impact on preferences. Overall, these results offer new information about the relative impacts of the Covid-19 and natural shocks on preferences and help us understand the wealth and age-based heterogeneous effects of these shocks.https://doi.org/10.1057/s41599-025-04421-x |
| spellingShingle | Hamza Umer Takashi Kurosaki Effects of the Covid-19 and natural agricultural shocks on preferences of farmers Humanities & Social Sciences Communications |
| title | Effects of the Covid-19 and natural agricultural shocks on preferences of farmers |
| title_full | Effects of the Covid-19 and natural agricultural shocks on preferences of farmers |
| title_fullStr | Effects of the Covid-19 and natural agricultural shocks on preferences of farmers |
| title_full_unstemmed | Effects of the Covid-19 and natural agricultural shocks on preferences of farmers |
| title_short | Effects of the Covid-19 and natural agricultural shocks on preferences of farmers |
| title_sort | effects of the covid 19 and natural agricultural shocks on preferences of farmers |
| url | https://doi.org/10.1057/s41599-025-04421-x |
| work_keys_str_mv | AT hamzaumer effectsofthecovid19andnaturalagriculturalshocksonpreferencesoffarmers AT takashikurosaki effectsofthecovid19andnaturalagriculturalshocksonpreferencesoffarmers |