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The Economic Consequences of Terror: A Brief Survey

Author

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  • Tilman Br�ck

    (German Institute for Economic Research (DIW Berlin))

  • Bengt-Arne Wickstr�m

    (Humboldt University of Berlin)

Abstract

This brief survey reviews the economic consequences of terrorism. It is argued that the indirect effects of terrorism are likely to outweigh the direct effects. The former include changes in risk, transaction costs, demand, public finances and growth. We also address the nature of anti-terrorist policy and of policies reducing the negative impact of terrorism. The former can change the incentives for terrorists to break with social conventions or maximize the costs of conducting terrorism. The latter is particularly important as badly designed policies could enhance the negative economic effects of terrorist actions.

Suggested Citation

  • Tilman Br�ck & Bengt-Arne Wickstr�m, 2004. "The Economic Consequences of Terror: A Brief Survey," HiCN Working Papers 03, Households in Conflict Network.
    • Handle: RePEc:hic:wpaper:03
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    References listed on IDEAS

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    Cited by:

    1. Stelios Markoulis, 2021. "Do Terror Attacks Affect the Euro? Evidence from the 21st Century," JRFM, MDPI, vol. 14(8), pages 1-24, July.
    2. Johanna Garnitz & Gernot Nerb, 2016. "ifo Weltwirtschaftsklima trübt sich weiter ein – Ergebnisse des 131. World Economic Survey (WES) für das erste Quartal 2016," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(04), pages 70-82, February.
    3. Cristina Elena ALBU, 2016. "Tourism And Terrorism: A Worldwide Perspective," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8(1), pages 1-19, March.
    4. Jeremy Wakeford, 2006. "Risks to Global Trade and Implications for South Africa’s Economy and Policy," Working Papers 06111, University of Cape Town, Development Policy Research Unit.
    5. Alam Khan & Zarinah Yusof, 2017. "Trade–Terrorist Evaluation Index (TTEi)," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 365-375, January.
    6. Bassil Charbel, 2013. "Macroeconomic Consequences of War and Terrorism in Lebanon," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 415-429, December.
    7. Gul, Tayyeba Gul & Hussain, Anwar Hussain & Bangash, Shafiqullah Bangash & Khattak, Sanam Waghma Khattak, 2010. "Impact of Terrorism on Financial Markets of Pakistan (2006-2008)," MPRA Paper 41990, University Library of Munich, Germany.
    8. Michael S. Pagano & T. Shawn Strother, 2013. "Risk, Uncertainty, and the Perceived Threat of Terrorist Attacks: Evidence of Flight-to-Quality," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-25.
    9. Oana Mădălina Popescu, 2019. "The impact of Terrorist Attacks on the World Economy. Stock Market Case Study," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 22(74), pages 100-113, December.
    10. Paul Benjamin & Carola Gruen, 2006. "The Regulatory Efficiency of the CCMA: A Statistical Analysis of the CCMA’s CMS Database," Working Papers 06110, University of Cape Town, Development Policy Research Unit.
    11. Axel Dreher & Martin Gassebner & Lars-H. Siemers, 2010. "Does Terrorism Threaten Human Rights? Evidence from Panel Data," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 65-93, February.

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    More about this item

    Keywords

    terror; terrorism; security policy;
    All these keywords.

    JEL classification:

    • A31 - General Economics and Teaching - - Multisubject Collective Works - - - Multisubject Collected Writings of Individuals
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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