IDEAS home Printed from https://ideas.repec.org/a/bla/ecinqu/v56y2018i4p2099-2115.html
   My bibliography  Save this article

The Impact Of Perceived Background Risk On Behavioral Health: Evidence From Hurricane Katrina

Author

Listed:
  • Michael F. Pesko

Abstract

I explore the hypothesis that Hurricane Katrina in August 2005 raised perceived background risks, which had spillover effects on behavioral health outcomes of mental health and substance use. I estimate the effect that Katrina had in the nondamaged storm surge region, in time intervals leading up to and after the hurricane, compared to areas impervious to hurricanes. I find causal evidence that Katrina increased poor mental health days by 18.8% for the first month after Katrina, and increased smoking among lifetime smokers until 2007. Effects were larger in counties with disproportionate risk to storm surge and for low‐educated individuals. (JEL D81, I12, Q54)

Suggested Citation

  • Michael F. Pesko, 2018. "The Impact Of Perceived Background Risk On Behavioral Health: Evidence From Hurricane Katrina," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2099-2115, October.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:4:p:2099-2115
    DOI: 10.1111/ecin.12583
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecin.12583
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ecin.12583?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Currie, Janet & Rossin-Slater, Maya, 2013. "Weathering the storm: Hurricanes and birth outcomes," Journal of Health Economics, Elsevier, vol. 32(3), pages 487-503.
    2. Levon Barseghyan & Francesca Molinari & Ted O'Donoghue & Joshua C. Teitelbaum, 2013. "The Nature of Risk Preferences: Evidence from Insurance Choices," American Economic Review, American Economic Association, vol. 103(6), pages 2499-2529, October.
    3. Pesko, Michael F. & Baum, Christopher F., 2016. "The self-medication hypothesis: Evidence from terrorism and cigarette accessibility," Economics & Human Biology, Elsevier, vol. 22(C), pages 94-102.
    4. Molly Fifer McIntosh, 2008. "Measuring the Labor Market Impacts of Hurricane Katrina Migration: Evidence from Houston, Texas," American Economic Review, American Economic Association, vol. 98(2), pages 54-57, May.
    5. V. Kerry Smith, 2008. "Risk Perceptions, Optimism, and Natural Hazards," Risk Analysis, John Wiley & Sons, vol. 28(6), pages 1763-1767, December.
    6. Carolyn Kousky, 2010. "Learning from Extreme Events: Risk Perceptions after the Flood," Land Economics, University of Wisconsin Press, vol. 86(3).
    7. Chad Cotti & Richard A. Dunn & Nathan Tefft, 2015. "The Dow is Killing Me: Risky Health Behaviors and the Stock Market," Health Economics, John Wiley & Sons, Ltd., vol. 24(7), pages 803-821, July.
    8. Jared Carbone & Daniel Hallstrom & V. Smith, 2006. "Can Natural Experiments Measure Behavioral Responses to Environmental Risks?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(3), pages 273-297, March.
    9. Irina Grafova, 2011. "Financial Strain and Smoking," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 327-340, June.
    10. Barnes Michael G & Smith Trenton G., 2009. "Tobacco Use as Response to Economic Insecurity: Evidence from the National Longitudinal Survey of Youth," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-29, November.
    11. Sunstein, Cass R, 2003. "Terrorism and Probability Neglect," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 121-136, March-May.
    12. Smith, V Kerry & Johnson, F Reed, 1988. "How Do Risk Perceptions Respond to Information? The Case of Radon," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 1-8, February.
    13. Jan Goebel & Christian Krekel & Tim Tiefenbach & Nicolas Ziebarth, 2015. "How natural disasters can affect environmental concerns, risk aversion, and even politics: evidence from Fukushima and three European countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1137-1180, October.
    14. Gollier, Christian & Pratt, John W, 1996. "Risk Vulnerability and the Tempering Effect of Background Risk," Econometrica, Econometric Society, vol. 64(5), pages 1109-1123, September.
    15. Ayyagari Padmaja & Sindelar Jody L, 2010. "The Impact of Job Stress on Smoking and Quitting: Evidence from the HRS," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-32, March.
    16. Bin, Okmyung & Landry, Craig E., 2013. "Changes in implicit flood risk premiums: Empirical evidence from the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 361-376.
    17. Heaton, John & Lucas, Deborah, 2000. "Portfolio Choice in the Presence of Background Risk," Economic Journal, Royal Economic Society, vol. 110(460), pages 1-26, January.
    18. Hallstrom, Daniel G. & Smith, V. Kerry, 2005. "Market responses to hurricanes," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 541-561, November.
    19. Manning, Willard G. & Mullahy, John, 2001. "Estimating log models: to transform or not to transform?," Journal of Health Economics, Elsevier, vol. 20(4), pages 461-494, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Ya-Ming & Kuo, Yen-Lien & Chu, Hone-Jay & Kuo, Wun-Ci & Tseng, Hsin-Chieh, 2023. "Health care cost of floods: Evidence from Typhoon Morakot in Taiwan," Journal of Asian Economics, Elsevier, vol. 87(C).
    2. Tobias Sytsma, 2020. "The Impact of Hurricanes on Trade and Welfare: Evidence from US Port-level Exports," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 625-655, October.
    3. Alberto Chong & Carla Srebot, 2023. "Environmental disasters and mental health: Evidence from oil spills in the Peruvian Amazon," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 771-796, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pesko, Michael, 2014. "Hurricane Katrina: Behavioral Health and Health Insurance in Non-Impacted Vulnerable Counties," MPRA Paper 56205, University Library of Munich, Germany.
    2. Mutlu, Asli & Roy, Debraj & Filatova, Tatiana, 2023. "Capitalized value of evolving flood risks discount and nature-based solution premiums on property prices," Ecological Economics, Elsevier, vol. 205(C).
    3. Pesko, Michael F. & Baum, Christopher F., 2016. "The self-medication hypothesis: Evidence from terrorism and cigarette accessibility," Economics & Human Biology, Elsevier, vol. 22(C), pages 94-102.
    4. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    5. Graff Zivin, Joshua & Liao, Yanjun & Panassié, Yann, 2023. "How hurricanes sweep up housing markets: Evidence from Florida," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    6. James R. Meldrum, 2016. "Floodplain Price Impacts by Property Type in Boulder County, Colorado: Condominiums Versus Standalone Properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 725-750, August.
    7. Georgic, Will & Klaiber, H. Allen, 2022. "Stocks, flows, and flood insurance: A nationwide analysis of the capitalized impact of annual premium discounts on housing values," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    8. Netusil, Noelwah R. & Moeltner, Klaus & Jarrad, Maya, 2019. "Floodplain designation and property sale prices in an urban watershed," Land Use Policy, Elsevier, vol. 88(C).
    9. McCoy, Shawn J. & Walsh, Randall P., 2018. "Wildfire risk, salience & housing demand," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 203-228.
    10. Beltrán, Allan & Maddison, David & Elliott, Robert, 2019. "The impact of flooding on property prices: A repeat-sales approach," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 62-86.
    11. Donggyu Yi & Hyundo Choi, 2020. "Housing Market Response to New Flood Risk Information and the Impact on Poor Tenant," The Journal of Real Estate Finance and Economics, Springer, vol. 61(1), pages 55-79, June.
    12. Meri Davlasheridze & Qin Fan, 2017. "Household Adjustments to Hurricane Katrina," The Review of Regional Studies, Southern Regional Science Association, vol. 47(1), pages 92-112, Winter.
    13. Matthew Gibson & Jamie T. Mullins & Alison Hill, 2019. "Climate Risk and Beliefs: Evidence from New York Floodplains," Department of Economics Working Papers 2019-02, Department of Economics, Williams College.
    14. Wang, Haoying, 2017. "Market Response to Flood Risk: An Empirical Study of Housing Values Using Boundary Discontinuities," MPRA Paper 85493, University Library of Munich, Germany.
    15. Meri Davlasheridze & Qing Miao, 2019. "Does Governmental Assistance Affect Private Decisions to Insure? An Empirical Analysis of Flood Insurance Purchases," Land Economics, University of Wisconsin Press, vol. 95(1), pages 124-145.
    16. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    17. Bourdeau-Brien, Michael & Kryzanowski, Lawrence, 2020. "Natural disasters and risk aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 818-835.
    18. Laura A. Bakkensen & Xiaozhou Ding & Lala Ma, 2019. "Flood Risk and Salience: New Evidence from the Sunshine State," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1132-1158, April.
    19. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    20. David Wolf & Kenji Takeuchi, 2022. "Who Gives a Dam? Capitalization of Flood Protection in Fukuoka, Japan," Discussion Papers 2203, Graduate School of Economics, Kobe University.

    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecinqu:v:56:y:2018:i:4:p:2099-2115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.