We analyse rural household livelihood and child school enrolment decisions in the post-conflict setting of the Chittagong Hill Tracts (CHT) region of Bangladesh. What makes this paper innovative is the use of current subjective perceptions regarding the possibility of violence in the future and past actual experiences of violence in explaining household economic decision-making. Preferences are endogenous in line with behavioural economics. Regression results show that heightened subjective perceptions of future violence and past actual experiences of conflict influence current consumption and child enrolment and could encourage risky mixed crop cultivation. The trauma emanating from past experiences combined with current high perceptions of risk of violence may induce bolder and riskier behaviour in line with prospect theories of risk. Furthermore, a postconflict household-level Phoenix or economic revival factor may be in operation, based partially on greater within-group trust.
|Title of host publication||Poverty Reduction Policies and Practices in Developing Asia|
|Editors||Almas Heshmati, Esfandiar Maasoumi, Guanghua Wan|
|Publication status||Published - 2015|
- Perceptions of violence Post-conflict reconstruction Risk Livelihood decision-making