IDEAS home Printed from https://ideas.repec.org/p/mcd/mcddps/2026_01.html

When Crisis Strikes:How Natural Disasters Transform Fairness Norms Across Generations

Author

Listed:
  • Phoebe Koundouris

    (School of Economics, Department of IEES and Director, ReSEES, Athens University of Economics and Business; Department of Earth Sciences, University of Cambridge; Peterhouse, University of Cambridge; Director, Sustainable Development Unit, ATHENA Information Technologies Research Center; Chair, Alliance of Excellence for Research Innovation on Aephoria (AE4RIA))

  • Anastasia Litina

    (Department of Economics, University of Macedonia, Visiting Researcher at the University of Luxembourg)

  • Ioannis Patios

    (Department of Economics, University of Macedonia)

Abstract

An unexplored impact of natural disasters is the scarcity they create and the resulting reallocation of resources. This paper examines this effect by analyzing how disaster-driven scarcity reshapes fairness considerations. Using data from the International Disaster Database and the European Social Survey, we show that disaster exposure increases perceptions of solidarity-driven fairness, including social support, rewards for effort, and equal access to services, while reducing perceptions of scarcity-driven fairness such as wage equality, access to education or the functioning of the political system. As disasters are a cross-border phenomenon, we further study spillovers from neighboring countries and find that they can strengthen solidarity-based fairness while simultaneously heightening skepticism toward institutional and societal fairness. Finally, we explore mechanisms, i.e., ιnstitutional trust, FDI, EU funds, that condition these relationships and shape how individuals interpret fairness norms after a disaster.

Suggested Citation

  • Phoebe Koundouris & Anastasia Litina & Ioannis Patios, 2026. "When Crisis Strikes:How Natural Disasters Transform Fairness Norms Across Generations," Discussion Paper Series 2026_01, Department of Economics, University of Macedonia, revised Jan 2026.
  • Handle: RePEc:mcd:mcddps:2026_01
    as

    Download full text from publisher

    File URL: http://econwp.uom.gr/pdf/dp012026.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Georg Kirchsteiger & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 437-459.
    2. Changshi Liu & Gang Kou & Yi Peng & Fawaz E. Alsaadi, 2019. "Location-Routing Problem for Relief Distribution in the Early Post-Earthquake Stage from the Perspective of Fairness," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    3. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    4. Richard T. Woodward, 2000. "Sustainability as Intergenerational Fairness: Efficiency, Uncertainty, and Numerical Methods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 581-593.
    5. Brutger, Ryan & Rathbun, Brian, 2021. "Fair Share? Equality and Equity in American Attitudes Toward Trade," International Organization, Cambridge University Press, vol. 75(3), pages 880-900, March.
    6. Sommer, Stephan & Mattauch, Linus & Pahle, Michael, 2022. "Supporting carbon taxes: The role of fairness," Ecological Economics, Elsevier, vol. 195(C).
    7. Steven Wu & Brian Roe, 2006. "Tournaments, Fairness, and Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 561-573.
    8. Bolton, Gary E, 1991. "A Comparative Model of Bargaining: Theory and Evidence," American Economic Review, American Economic Association, vol. 81(5), pages 1096-1136, December.
    9. Monica Escaleras & Charles A. Register, 2011. "Natural Disasters and Foreign Direct Investment," Land Economics, University of Wisconsin Press, vol. 87(2), pages 346-363.
    10. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages 298-312, August.
    11. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    12. Franciosi, Robert, et al, 1995. "Fairness: Effect on Temporary and Equilibrium Prices in Posted-Offer Markets," Economic Journal, Royal Economic Society, vol. 105(431), pages 938-950, July.
    13. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    14. Andrés Rodríguez-Pose, 2018. "CommentaryThe revenge of the places that don’t matter (and what to do about it)," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(1), pages 189-209.
    15. Christoph Engel, 2011. "Dictator games: a meta study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 583-610, November.
    16. Andres Rodriguez-Pose, 2018. "The revenge of the places that don?t matter (and what to do about it)," Papers in Evolutionary Economic Geography (PEEG) 1805, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    17. Phoebe Koundouri & Sotiris Georganas & Alina Velias & Anna Triantafyllidou, 2025. "The Influence of Disaster Experience on Citizen Perceptions and Public Spending Priorities," DEOS Working Papers 2534, Athens University of Economics and Business.
    18. Ernst Fehr & Simon Gächter, 2002. "Altruistic punishment in humans," Nature, Nature, vol. 415(6868), pages 137-140, January.
    19. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    20. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    21. Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
    22. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    23. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    24. Alexander W. Cappelen & Karl O. Moene & Erik Ø. Sørensen & Bertil Tungodden, 2013. "Needs Versus Entitlements—An International Fairness Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 574-598, June.
    25. Warr, Peter & Aung, Lwin Lwin, 2019. "Poverty and inequality impact of a natural disaster: Myanmar’s 2008 cyclone Nargis," World Development, Elsevier, vol. 122(C), pages 446-461.
    26. Martin Gassebner & Alexander Keck & Robert Teh, 2010. "Shaken, Not Stirred: The Impact of Disasters on International Trade," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 351-368, May.
    27. Christina Starmans & Mark Sheskin & Paul Bloom, 2017. "Why people prefer unequal societies," Nature Human Behaviour, Nature, vol. 1(4), pages 1-7, April.
    28. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
    29. Chilton, Adam S. & Milner, Helen V. & Tingley, Dustin, 2020. "Reciprocity and Public Opposition to Foreign Direct Investment," British Journal of Political Science, Cambridge University Press, vol. 50(1), pages 129-153, January.
    30. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    31. Eduardo Cavallo & Andrew Powell & Oscar Becerra, 2010. "Estimating the Direct Economic Damages of the Earthquake in Haiti," Economic Journal, Royal Economic Society, vol. 120(546), pages 298-312, 08.
    32. Atkinson, Anthony B., 2015. "Inequality what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
    33. Andreas C. Drichoutis & Achilleas Vassilopoulos & Jayson L. Lusk & Rodolfo M. NaygaJr., 2017. "Consumer preferences for fair labour certification," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(3), pages 455-474.
    34. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    35. Johanna Köchling & Julia E. Koller & Jana Straßheim & Yannic Rehm & Lucas Chancel & Claudia Diehl & Harald T. Schupp & Britta Renner, 2025. "The carbon perception gap in actual and ideal carbon footprints across wealth groups," Nature Communications, Nature, vol. 16(1), pages 1-12, December.
    36. Rees, Albert, 1993. "The Role of Fairness in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 243-252, January.
    37. Wu, Steven Y. & Roe, Brian E., 2006. "AJAE Appendix: Tournaments, Fairness, and Risk," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(3), pages 1-44, August.
    Full references (including those not matched with items on IDEAS)

    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. Rahman, Muhammad Habibur, 2018. "Earthquakes don’t kill, built environment does: Evidence from cross-country data," Economic Modelling, Elsevier, vol. 70(C), pages 458-468.
    2. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    3. Dieppe,Alistair Matthew & Kilic Celik,Sinem & Okou,Cedric Iltis Finafa, 2020. "Implications of Major Adverse Events on Productivity," Policy Research Working Paper Series 9411, The World Bank.
    4. Muhammad Habibur Rahman & Nejat Anbarci & Prasad Sankar Bhattacharya & Mehmet Ali Ulubaşoğlu, 2017. "The Shocking Origins of Political Transitions: Evidence from Earthquakes," Southern Economic Journal, John Wiley & Sons, vol. 83(3), pages 796-823, January.
    5. Cardella, Eric & Roomets, Alex, 2022. "Pay distribution preferences and productivity effects: An experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    6. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Maite D. Laméris & Richard Jong-A-Pin & Rasmus Wiese, 2018. "An Experimental Test of the Validity of Survey-Measured Political Ideology," CESifo Working Paper Series 7139, CESifo.
    8. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, IZA Network @ LISER.
    9. Gary E. Bolton & Axel Ockenfels, 2004. "The Behavioral Tradeoff between Efficiency and Equity when a Majority Rules," Papers on Strategic Interaction 2003-12, Max Planck Institute of Economics, Strategic Interaction Group.
    10. Diego D'iaz & Pablo Paniagua & Cristi'an Larroulet, 2024. "Earthquakes and the wealth of nations: The cases of Chile and New Zealand," Papers 2405.12041, arXiv.org.
    11. Klomp, Jeroen, 2017. "Flooded with debt," Journal of International Money and Finance, Elsevier, vol. 73(PA), pages 93-103.
    12. Konow, James, 1996. "A positive theory of economic fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 13-35, October.
    13. Lionel Page & Daniel G. Goldstein, 2016. "Subjective beliefs about the income distribution and preferences for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(1), pages 25-61, June.
    14. Joseph, Iverson-Love, 2022. "The effect of natural disaster on economic growth: Evidence from a major earthquake in Haiti," World Development, Elsevier, vol. 159(C).
    15. Giovanni Gualtieri & Marcella Nicolini & Fabio Sabatini & Luca Zamparelli, 2019. "Repeated Shocks and Preferences for Redistribution," Working Papers 2018.15, Fondazione Eni Enrico Mattei.
    16. Nadja Dwenger & Ingrid Hoem Sjursen & Jasmin Vietz, 2024. "What Is Fair? Experimental Evidence on Fair Equality vs Fair Inequality," CESifo Working Paper Series 11289, CESifo.
    17. Nobel Prize Committee, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    18. Bharat Chandar & Uri Gneezy & John A. List & Ian Muir, 2019. "The Drivers of Social Preferences: Evidence from a Nationwide Tipping Field Experiment," NBER Working Papers 26380, National Bureau of Economic Research, Inc.
    19. Ingvild Almås & Alexander W. Cappelen & Bertil Tungodden, 2020. "Cutthroat Capitalism versus Cuddly Socialism: Are Americans More Meritocratic and Efficiency-Seeking than Scandinavians?," Journal of Political Economy, University of Chicago Press, vol. 128(5), pages 1753-1788.
    20. Anastasia Litina & Ioannis Patios, 2026. "The Impact of Natural Disasters on Migration Attitudes," Discussion Paper Series 2026_02, Department of Economics, University of Macedonia, revised Feb 2026.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mcd:mcddps:2026_01. 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: Theodore Panagiotidis or Anastasia Litina (email available below). General contact details of provider: http://www.uom.gr/index.php?tmima=3 .

    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.