Every cloud has a silver lining

In this article we investigate the 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 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.

The title of the the paper is "Do Natural Disasters Enhance Societal Trust?" A draft is here.