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Which Terror at Which Cost? On the Economic Consequences of Terrorist Attacks

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  • Tavares, José
  • Llussá, Fernanda

Abstract

We assess the cost of different types of terrorist attacks on the growth of output and of its components. Private Consumption and Investment are significantly and negatively affected by all terror indicators, and the largest impact is respectively associated with the number of victims or the number of attacks.

Suggested Citation

  • Tavares, José & Llussá, Fernanda, 2010. "Which Terror at Which Cost? On the Economic Consequences of Terrorist Attacks," CEPR Discussion Papers 8077, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8077
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    More about this item

    Keywords

    Consumption; Government expenditure; investment; Output growth; Terrorism;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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