DP8077 Which Terror at Which Cost? On the Economic Consequences of Terrorist Attacks

Author(s): Fernanda Llussá, José Tavares
Publication Date: October 2010
Keyword(s): consumption, government expenditure, investment, output growth, terrorism
JEL(s): C23, E32, E62, E65
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=8077

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.