Natural Disasters In Addition To Necessitate For Redistribution: Lessons From An Earthquake

Via the Munich Personal RePEc Archive, May 1, 2018:

Abstract

 The literature shows that when a gild believes that wealth is determined past times random “luck” rather than past times merit, it demands to a greater extent than redistribution. Adverse shocks, similar earthquakes, strengthen the belief that random “bad luck” tin frustrate the outcomes achieved amongst merit. We theoretically illustrate that individuals react to such shocks past times raising back upwardly for redistribution. We thus acquaint prove of this demeanour past times exploiting a natural experiment provided past times i of the strongest seismic events that occurred inwards Italy inwards the concluding 3 decades, the L’Aquila earthquake inwards 2009. We get together a new dataset past times matching information on the basis acceleration registered throughout the National Strong Motion Network during the earthquake amongst survey information virtually private opinions on redistribution collected a few months later. The empirical analysis illustrates that the intensity of the shakes is associated amongst subsequent stronger beliefs that, for a gild to live on fair, income inequalities should live on levelled past times redistribution.

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