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The Lasting Effects of Natural Disasters on Property Crime: Evidence from the 2010 Chilean Earthquake

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  • Jorge García Hombrados

    (Department of Economics, University of Sussex)

Abstract

Natural disasters cause human losses, destroy economic assets and are often followed by widespread looting and increases in altruistic behaviour; affecting ambiguously the long-term benefits and costs of crime. This study investigates whether the multiple consequences of natural disasters lead to lasting changes in property crime rates through assessing the effect on property crime dynamics of the 8.8 Richter Magnitude earthquake that struck Chile in February 2010. Using household data from victimization surveys and a difference in difference strategy, the analysis shows that exposure to a very strong earthquake intensity decreased by 1.1-2.2 percentage points the probability of home burglary the year of the earthquake. The effect remained stable over the 4 post-earthquake years studied. Similar effects of the earthquake are found for other property crimes including larceny and non-home burglary. The analysis of mechanisms reveals that the lasting drop in property crime rates in areas devastated by the earthquake seems to be linked to the positive effect of the earthquake on the strength of community life and on the adoption of community-based strategies to prevent crime in these municipalities.

Suggested Citation

  • Jorge García Hombrados, 2017. "The Lasting Effects of Natural Disasters on Property Crime: Evidence from the 2010 Chilean Earthquake," Working Paper Series 1717, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:1717
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    File URL: http://www.sussex.ac.uk/economics/documents/wps-17-2017.pdf
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    Cited by:

    1. Testa, Patrick A., 2021. "Shocks and the spatial distribution of economic activity: The role of institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 791-810.
    2. Buonanno, Paolo & Plevani, Giacomo & Puca, Marcello, 2023. "Earthquake hazard and civic capital," European Journal of Political Economy, Elsevier, vol. 78(C).
    3. Yu, Weihua & Hu, Jingjing & Deng, Chenchen, 2024. "Overflowing waters, diluted investments: The enduring impact of historical Yellow River floods on enterprise fixed assets investments," Journal of Asian Economics, Elsevier, vol. 92(C).
    4. Bertinelli, Luisito & Mahé, Clotilde & Strobl, Eric, 2023. "Earthquakes and mental health," World Development, Elsevier, vol. 169(C).
    5. Aoki, Yu & Koutmeridis, Theodore, 2019. "Shaking Criminal Incentives," IZA Discussion Papers 12781, Institute of Labor Economics (IZA).
    6. Lu, Wei & Yang, Po & Zheng, Shilin & Zhou, Sen, 2023. "Natural disasters and high-stakes exam performance: Evidence from the 2008 Wenchuan earthquake," China Economic Review, Elsevier, vol. 77(C).
    7. Domínguez, Magdalena & Montolio, Daniel, 2021. "Bolstering community ties as a mean of reducing crime," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 916-945.
    8. Xiaodong Zhu & Zijing Jin & Shunsuke Managi & XiRong Xun, 2021. "How meteorological disasters affect the labor market? The moderating effect of government emergency response policy," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2625-2640, July.

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    More about this item

    Keywords

    natural disasters; crime; informal guardianship;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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