Yamamura, Eiji (2012): Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake.
Download (294kB) | Preview
The great Hanshin-Awaji (Kobe) earthquake, which occurred in 1995, resulted in tremendous economic damage to the city of Kobe. Using individual-level data of Japan during the period 2000–08, I investigated the long-term impact of the earthquake on the happiness of surviving victims. After controlling for individual characteristics and characteristics of residential areas, the following key findings were obtained: (1) victims were more likely to feel happy than non-victims; (2) this tendency disappeared with time. This suggests that the aspiration level declined following the experience of the devastating event, which led victims to feel happier. However, victims adapt to the new circumstances with time.
|Item Type:||MPRA Paper|
|Original Title:||Natural disasters and their long-term effect on happiness: the case of the great Hanshin-Awaji earthquake.|
|Keywords:||Natural disasters, happiness, subjective well-being, adaptation, aspiration level|
|Subjects:||Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming
|Depositing User:||eiji yamamura|
|Date Deposited:||20 Mar 2012 14:33|
|Last Modified:||21 Jul 2016 16:52|
Albala-Bertrand, J. (1993). Political Economy of Large Natural Disasters, Oxford University Press, Inc., New York.
Alesina, A., De Tella, R., MacCulloch, R. (2004). Inequality and happiness: are European and American different? Journal of Public Economics, 88, 2009-2042.
Berger, E.M., 2010. The Chernobyl disaster, concern about the environment, and life satisfaction. Kyklos 63, 1–8.
Bjornskov,C. (2003). The happy few: cross--country evidence on social capital and life satisfaction," Kyklos, , 56(1), 3-16.
Blanchflower, D. G. Oswald, A. J., (2004). Well-being over time in Britain and the USA, Journal of Public Economics, 88, 1359-1386.
Blanchflower, D. G. Oswald, A. J., (2008). Is well-being U-shaped over the life cycle?, Social Science & Medicine, 66(8), 1733-1749.
Bolton, D., O'Ryan, D., Udwin, O., Boyle, S., Yule, W. (2000). The long-term psychological effects of a disaster experienced in adolescence: II: General psychopathology. Journal of Child Psychology and Psychiatry, 41, 513-523.
Bozzoli, C., Brück, T., Muhumuza, T., 2012. Does war influence individual expectations? Economics Letters 113, 288–291.
Castillo, M., Carter, M., 2005. Coping with disaster: Morals, markets, and mutual insurance—Using economic experiments to study recovery from Hurricane Mitch, in: Barrett, C. (ed.), The Social Economics of Poverty: On Identities, Communities, Groups and Networks. Routledge, New York, pp. 268–287.
Cavallo, E., Powell, A., and Becerra,O. (2010). Estimating the direct economic damages of the earthquake in Haiti. Economic Journal,120(546), F298-F312.
Clark, A., Oswald, A. (1996)., Satisfaction and comparison income. Journal of Public Economics 61, 359–381.
Congleton, R.G. (2006). The story of Katrina: New Orleans and the political economy of catastrophe. Public Choice 127, 5-30.
Di Tella, R., MacCulloch, R. J. (2008). Gross national happiness as an answer to the Easterlin Paradox?.Journal of Development Economics, 86, 22–42.
Easterlin, R. (1974). Does Economic Growth Improve the Human Lot? Some Empirical Evidence. In: Paul A. David and Melvin W. Reder (eds.) Nations and Households in Economic Growth: Essays in Honour of Moses Abramowitz. New York and London: Academic Press: 89-125.
Easterlin, R. (1995). Will raising the income of all increase the happiness of all? Journal of Economic Behavior and Organization 27, 35-47.
Easterlin, R. (2001). Income and happiness: toward a unified theory. Economic Journal, 111, 464-484.
Easterlin, R. (2005). A puzzle for adaptive theory. Journal of Economic Behavior and Organization 56, 513-521.
Easterlin, R. (2006). Life cycle happiness and its sources. Journal of Economic Psychology, 27(4), 463-482.
Frey, B., & Stutzer, A.(2002a). What can economists learn from happiness research? Journal of Economic Literature, 40(2), 402-435.
Frey, B., & Stutzer, A. (2002b). Happiness and Economics: How the Economy and Institutions Affect Human Well-Being. Princeton: Princeton University Press.
Horwich, George. (2000). Economic lessons from Kobe Earthquake. Economic Development and Cultural Change 48. 521-542.
Ishino, T., Ogaki, M., Kamesaka, A., Murai,T. (2012). Effect of the Great East Japan earthquake on Happiness (in Japanese). Mimeo.
Kahn, M. (2005). The death toll from natural disasters: The role of income, geography and institutions. Review of Economics and Statistics 87(2), 271-284.
Kellenberg, D., Mobarak, A. (2008). Does rising income increase or decrease damage risk from natural disasters? Journal of Urban Economics 63, 788-802.
Kimball, M., Levy, H., Ohtake, F., & Tsutsui, Y. (2006). Unhappiness after Hurricane Katrina. NBER working paper, 12062.
Kuroki, M. (2011). Does social trust increase individual happiness in Japan? Japanese Economic Review, 62(4), 444-459.
Luechinger, S. & Raschky, P. A. (2009). Valuing flood disasters using the life satisfaction approach. Journal of Public Economics, 93(3-4), 620-633.
Luttmer, E. (2005). Neighbors as negatives: relative earnings and well-being. Quarterly Journal of Economics 120 (3), 963-1002.
McBride, M. (2001). Relative-income effects on subjective well-being in the cross-section. Journal of Economic Behavior and Organization 45, 251-278.
Metcalfe, R., Powdthavee, N. & Dolan, P. (2011). Destruction and distress: using a quasi-experiment to show the effects of the September 11 attacks on mental well-being in the United Kingdom. Economic Journal, 121, F81-F103.
Ministry of Land, Infrastructure, Transport and Tourism (1996). White Paper on Disaster Management 1996.
Ministry of Land, Infrastructure, Transport and Tourism: Tokyo.
Myres, D.G. (1992). The Pursuit of Happiness. Avon. New York.
Myres, D.G. (2000). The funds, friends, and faith of happy people. American Psychologist, 55(1), 56-67.
Riis, J., Loewenstein, G., Baron, J., Jepson, C., Fagerlin, A., & Ubel, P.A. (2005). Ignorance of hedonic adaptation to hemodialysis: A study using ecological momentary assessment. Journal of Experimental Psychology: General, 134(1), 3-9.
Sawada, Y. (2007). The impact of natural and manmade disasters on household welfare. Agricultural Economics 37, 59–73.
Sawada, Y., & Shimizutani, S. (2007). Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake. Applied Economics Letters 14(4–6), 303–306.
Sawada, Y., & Shimizutani, S. (2008). How do people cope with natural disasters? Evidence from the great Hanshin-Awaji (Kobe) earthquake in 1995. Journal of Money, Credit and Banking 40(2–3), 463–488.
Shields, M. A., Wheatley, P S., Wooden, M.(2009). Life satisfaction and economic and social characteristics of neighborhoods. Journal of Population Economics 22, 421-443.
Shughart II., W.F. (2006). Katrinanomics: The politics and economics of disaster relief. Public Choice 127, 31-53.
Skidmore, M., & Toya, H., 2002. Do natural disasters promote long-run growth? Economic Inquiry 40 (4), 664–687.
Strobl, E. (2011 a). The economic growth impact of hurricanes: Evidence from U.S. coastal countries. Review of Economics and Statistics 93(2), 575–589.
Strobl, E. (2011 b). The economic growth impact of natural disasters in developing countries: Evidence from hurricane strikes in the Central American and Caribbean regions. Journal of Development Economics, 97, 130–141.
Stutzer, A., (2004). The role of income aspirations in individual happiness. Journal of Economic Behavior and Organization 54, 89-109.
Tol, R., Leek, F. (1999). Economic analysis of natural disasters. in T. Downing, A. Olsthoorn, and R. Tol, eds, Climate Change and Risk, Routledge, London.
Toya, H., Skidmore, M. (2007). Economic development and the impacts of natural disasters. Economics Letters 94(1), 20-25.
Toya, H., Skidmore, M. (2010). Natural disaster impacts and fiscal decentralization. CESifo Forum 11(2), 43-55.
Tsutsui, Y., Ohtake, F. (2012). Asking about changes in happiness in a daily web survey and its implication for the Easterlin Paradox. Japanese Economic Review, 63(1), 38-56.
Yamamura, E. (2010). Effects of interactions among social capital, income and learning from experiences of natural disasters : A case study from Japan. Regional Studies 44 (8), 1019-1032.
Yamamura, E. (2012). Effect of free media on views regarding nuclear energy after the Fukushima accident. Kyklos 65 (1), 131-140.