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Do Natural Disasters Enhance Societal Trust?

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  • Hideki Toya
  • Mark Skidmore

Abstract

In this paper we investigate the long- and short-run relationships between disasters and societal trust. A growing body research suggests that factors such as income inequality, ethnic fractionalization, and religious heritage are important determinants of social capital in general, and trust in particular. We present new cross-country and panel data evidence of another important determinant of trust—the frequency of natural disasters. Frequent naturally occurring events such as storms require (and provide opportunity for) societies to work closely together to meet their challenges. While natural disasters can have devastating human and economic impacts, a potential spillover benefit of greater disaster exposure may be a more tightly knit society.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3905.

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Date of creation: 2012
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Handle: RePEc:ces:ceswps:_3905

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Related research

Keywords: natural disasters; economic development; social capital; trust;

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References

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  1. Hideki Toya & Mark Skidmore, 2010. "Natural Disaster Impacts and Fiscal Decentralization," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 43-55, 07.
  2. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, Elsevier, vol. 89(9-10), pages 1907-1933, September.
  3. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, Elsevier, vol. 40(7), pages 1317-1336.
  4. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 40(4), pages 664-687, October.
  5. Raymond Robertson & Mark Skidmore & Hideki Toya, 2005. "A Reevaluation of the Effect of Human Capital Accumulation on Economic Growth: Using Natural Disasters as an Instrument," Working Papers, UW-Whitewater, Department of Economics 05-08, UW-Whitewater, Department of Economics.
  6. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, Elsevier, vol. 88(2), pages 221-231, March.
  7. Raddatz, Claudio, 2007. "Are external shocks responsible for the instability of output in low-income countries?," Journal of Development Economics, Elsevier, Elsevier, vol. 84(1), pages 155-187, September.
  8. Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Working Paper Series, Uppsala University, Department of Economics 2005:2, Uppsala University, Department of Economics.
  9. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(2), pages 501-26, May.
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Blog mentions

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  1. Every cloud has a silver lining
    by UDADISI in UDADISI on 2014-04-26 22:53:00
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Cited by:
  1. Eiji Yamamura & Yoshiro Tsutsui & Chisako Yamane & Shoko Yamane & Nattavudh Powdthavee, 2014. "Trust and Happiness: Comparative Study Before and After the Great East Japan Earthquake," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0904, Institute of Social and Economic Research, Osaka University.
  2. Eiji Yamamura, 2013. "Natural disasters and social capital formation: The impact of the Great Hanshin-Awaji earthquake," EERI Research Paper Series EERI RP 2013/10, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Yamamura, Eiji, 2013. "Impact of natural disaster on public sector corruption," MPRA Paper 49760, University Library of Munich, Germany.

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