The Long Run Effects of Earthquakes on Individuals’ Behaviour and Preferences. A Field Experiment in Italy

In this paper, we report the results of a field experiment conducted in Southern Italy in 2023, analysing the behavioural effects of earthquakes as far as trust, trustworthiness, and risk aversion are concerned. The experiments were conducted in an area where a disastrous earthquake occurred in 1980 within the Campania region. Our working hypotheses aim at testing whether there are long-term effects of an earthquake. The experimental design comprised two treatments. For the first treatment, we recruited subjects living in towns close to the earthquake epicentre that had experienced significant damage from the disaster. For the second treatment, we recruited subjects living in towns with similar socio-economic characteristics but located far from the epicentre. Our results indicate that subjects who experienced the earthquake and its aftermath are more willing to trust, reciprocate kindness, and are more risk-averse than subjects in the alternative treatment. Overall, our results shed new light on the long-term effects of catastrophes and bear relevant implications for public and health policies.