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Title:Do natural disasters enhance societal trust? PDF Logo
Authors:Toya, Hideki
Skidmore, Mark
Issue Date:2012
Series/Report no.:CESifo Working Paper: Energy and Climate Economics 3905
Abstract:In this paper we investigate the long-run relationship 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 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 severe storms can have devastating human and economic impacts, a potential spillover benefit of greater storm exposure may be a more tightly knit society.
Subjects:natural disasters
economic development
social capital
trust
JEL:O10
Q54
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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