The lasting effects of natural disasters on property crime: Evidence from the 2010 Chilean earthquake

Abstract

Natural disasters cause human losses, destroy economic assets and are often followed by widespread looting and altruistic behaviours of many individuals; affecting ambiguously the long-term benefits and costs of committing crime and the demand for crime prevention. Using household data from victimisation surveys and a difference in difference strategy, this paper shows that municipalities exposed to the 8.8 Richter magnitude earthquake that struck Chile in February 2010 experienced lasting reductions in the prevalence of property crime. The results of the analysis of mechanisms are consistent with a positive effect of the earthquake on the strength of community life and the subsequent adoption of community-based crime prevention measures.