extreme weather events

Climate hazards destroy the livelihoods and assets of millions of people worldwide, but also spur solidarity within affected …

Standard economic theory generally assumes preferences to be stable over time. However, major events in peoples’ lives – such as natural disasters – have the potential to affect peoples’ preferences. Recently, the number of studies examining the temporal stability of individuals’ preferences increased markedly, suggesting increasing doubt about the appropriateness of this standard microeconomic assumption.