American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Effect of Terrorism on Employment and Consumer Sentiment: Evidence from Successful and Failed Terror Attacks
American Economic Journal: Applied Economics
vol. 10,
no. 4, October 2018
(pp. 246–82)
Abstract
This paper examines the economic consequences of terror attacks by exploiting the inherent randomness in the success or failure of terror attacks. The findings suggest that successful attacks, in comparison to failed attacks, reduce the number of jobs and total earnings in targeted counties by approximately 2 percent in the years following the attack. Analyzing the channels, I find that successful attacks affect, in particular, specific industries such as housing. Last, I show that successful attacks receive more media coverage and increase levels of consumer pessimism in terms of business conditions and buying conditions.Citation
Brodeur, Abel. 2018. "The Effect of Terrorism on Employment and Consumer Sentiment: Evidence from Successful and Failed Terror Attacks." American Economic Journal: Applied Economics, 10 (4): 246–82. DOI: 10.1257/app.20160556Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D14 Household Saving; Personal Finance
- J31 Wage Level and Structure; Wage Differentials
- K42 Illegal Behavior and the Enforcement of Law
- L82 Entertainment; Media
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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