Extreme weather events, home damage, and the eroding locus of control

Ha Nguyen and Francis Mitrou

MPRA Paper from University Library of Munich, Germany

Abstract: The catastrophic consequences of natural disasters on social and economic systems are extensively documented, yet their influence on individuals' sense of control over their life outcomes remains unexplored. This study pioneers an investigation into the causal effects of natural disaster-related home damage on the locus of control. Utilizing Australian longitudinal data, we implement an individual fixed effects instrumental variables approach leveraging time-varying, exogenous exposure to local cyclones to address confounding factors. Our findings provide robust evidence that natural disaster-induced home damage statistically significantly and substantially diminishes individuals’ perception of control, particularly for those at the lower end of the locus of control distribution. This effect is disproportionately pronounced among older individuals, renters, and those from lower-income households. This newfound understanding offers opportunities for developing targeted interventions and support mechanisms to enhance resilience and assist these vulnerable populations following natural disasters.

Keywords: Natural Disasters; Locus of Control; Housing; Australia (search for similar items in EconPapers)
JEL-codes: I31 Q54 R20 (search for similar items in EconPapers)
Date: 2025-04
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Forthcoming in Ecological Economics (2025): pp. 108659

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Related works:
Journal Article: Extreme weather events, home damage, and the eroding locus of control (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:124610

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