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The literature shows that when a society believes that wealth is determined by random "luck" rather than by merit, it demands more redistribution. Adverse shocks, like earthquakes, strengthen the belief that random "bad luck" can frustrate the outcomes achieved with merit. We theoretically...
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Natural disasters often produce large income shocks to households. We analyze the impact of natural disasters on household finances. Using a triple differences approach, we estimate the effect of natural disasters on credit card outcomes for individuals in varying financial positions receiving...
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Atlantic hurricanes. We identify impacted communities using major disaster declarations by the United States federal government … high-income communities in disaster affected versus unaffected areas, before and after the disasters. Across the events we … study, a common outcome is that low-income communities in the disaster zones endure higher average percentage price …
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