| Summary: | I explore the hypothesis that Hurricane Katrina in August 2005 raised perceived background risks, which had spillover effects on behavioral health outcomes of mental health and substance use. I estimate the effect that Katrina had in the nondamaged storm surge region, in time intervals leading up to and after the hurricane, compared to areas impervious to hurricanes. I find causal evidence that Katrina increased poor mental health days by 18.8% for the first month after Katrina, and increased smoking among lifetime smokers until 2007. Effects were larger in counties with disproportionate risk to storm surge and for low-educated individuals. (JEL D81, I12, Q54). © 2018 Western Economic Association International
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