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Michael G. Cuna, Musharraf Cyan, M. Taha Kasim, John A. List, Michael K Price

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From newborns to the elderly, exposure to violence and conflict has been found to have deleterious effects. In this study, we explore a unique type of violence: exposure to the Taliban. Pairing a field experiment with a field survey among citizens in Khyber Pakhtunkhwa (KP), Pakistan, we examine how exposure to violence affects general trust, subjective well-being, and confidence in institutions. In our field experiment, we observe that exposure to conflict significantly alters the relative valuation of monetary rewards for oneself compared to those for a comparable peer. Specifically, individuals subjected to violence demonstrate a marked tendency to prioritize their own financial gain over that of a similar other. In the survey, we find that exposure to violence is associated with reduced general trust, trust in informal institutions, and subjective well-being. Interestingly, being exposed to violence increases trust in formal institutions. Our combined results highlight that the interplay between violence and trust dynamics is complex and highly consequential. In turn, the policy implications highlight the need for a multifaceted strategy to support individuals and communities affected by violence, ensuring both immediate relief and long-term resilience.

Michael G. Cuna, Lenka Fiala, Min Sok Lee, John A. List, Sutanuka Roy

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This study examines how mothers' risk and ambiguity preferences affect early childhood investments and outcomes by assessing over 6,000 mothers in Rajasthan, India. Results show that more risk and ambiguity averse mothers make greater investments in their children's nutrition between ages 0-6. These investments correlate with superior cognitive and non-cognitive skills in children, even after controlling for socioeconomic factors. Notably, higher maternal risk and ambiguity aversion can mitigate negative impacts of socioeconomic disadvantages (maternal illiteracy, belonging to historically discriminated groups, limited media access) on all measures of early-life skills, highlighting the importance of understanding preferences in addressing inequities.