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Fear of the dark: How terrorist events affect trust in the long run

Author

Listed:
  • Elisa Borghi
  • Michela Braga
  • Francesco Scervini

Abstract

In this paper, we provide new evidence on whether individuals differ in their level of trust depending on their exposure to unexpected terrorist attacks during crucial life phases. In line with the well-grounded psychological theories on the formation of human beliefs, attitudes, and values, we find that exposure to traumatic and violent events in the two essential stages of human development "adolescence and early adulthood" reduces trust in other people. The formed values tend to be persistent over time, and the results are robust to several checks.

Suggested Citation

  • Elisa Borghi & Michela Braga & Francesco Scervini, 2020. "Fear of the dark: How terrorist events affect trust in the long run," BAFFI CAREFIN Working Papers 20149, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:baf:cbafwp:cbafwp20149
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    References listed on IDEAS

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    2. Fazio, Andrea, 2023. "Protests, Long-term Preferences, and Populism. Evidence from 1968 in Europe," GLO Discussion Paper Series 1329, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Social capital; Trust; Terrorism; Value formation;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • Z1 - Other Special Topics - - Cultural Economics

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