Do adversarial environmental conditions create social cohesion? We provide new answers to this question by exploiting spatial and temporal variation in exposure to earthquakes across Chile. Using a variety of methods and controlling for a number of socio-economic variables, we find that exposure to earthquakes has a positive effect on several indicators of social cohesion. Social cohesion increases after a big earthquake and slowly erodes in periods where environmental conditions are less adverse. Our results contribute to the current debate on whether and how environmental conditions shape formal and informal institutions.

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We study a model where individuals choose both the level of provision of a public good and the quota of low-skilled immigrants that are allowed into the country. Individuals can supplement the public good in the private market. Immigrants a¤ect natives through three channels: (i) the labor market; (ii) tax collection; (iii) the quality of the public good. We …nd that the higher the political weight of the rich (highly skilled) is, the less tolerant the poor and the middle-class are toward immigration and the more demanding they are toward increasing public spending. The rich are the most favorable to immigration. As they have more weight, the political outcome is closer to their preferences and further from the preferences of the other groups. We use data from the European Social Survey to test the implications of our model. JEL Classi…cation: H41, J61, D72

We report the findings of experiments designed to study how people learn in network games. Network games offer new opportunities to identify learning rules, since on networks (compared to, e.g., random matching) more rules differ in terms of their information requirements. Our experimental design enables us to observe both which actions participants choose and which information they consult before making their choices. We use these data to estimate learning types using finite mixture models. Monitoring information requests turns out to be crucial, as estimates based on choices alone show substantial biases. We also find that learning depends on network position. Participants in more complex environments (with more network neighbors) tend to resort to simpler rules compared to those with only one network neighbor.

We study how prenatal maternal stress, caused by sustained seismic activity, affects birth outcomes in Chile during the period 2011-2015. A mother-fixed-effect model together with the spatiotemporal variation of earthquakes in Chile allow us to deal with identification issues that have obscured previous estimates. Our findings show that prenatal maternal stress seems to affect fetal growth, because infants born to mothers exposed to earth tremors in early and/or mid gestation are more likely to be large for gestational age. The estimates suggest that relatively poorer Chilean mothers are more vulnerable to earthquakes, because their babies seem to drive the reported impacts on fetal growth. We discuss and provide evidence that suggests a possible mechanism that explains the varying results across socioeconomic status. Mothers with diabetes and/or hypertension are more likely to have large-for-gestational-age babies. Exposure to earth tremors seems to increase the incidence of these afflictions among the affected population, with the observed impact on diabetes being relatively higher among women with lower socioeconomic status.