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The Economic Cost of Harboring Terrorism

Bibliographic Data

ID6284755
AuthorsEfraim Benmelech (Harvard University), Claude Berrebi (0000-0002-1350-5062, RAND Corporation, Santa Monica, CA, USA), Esteban F Klor (0000-0002-6756-0825, Department of Economics, Hebrew University, Jerusalem, Israel)
Year2010
Volume54
Issue2
Pages331-353
Publication date2010-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Conflict Resolution (JOURNAL)
Journal identifiersISSN: 0022-0027 • E-ISSN: 1552-8766
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022002709355922
OpenAlexW2111655825
LanguageEN
Citations received13
References cited16

The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This article aims to fill that gap by examining the economic costs of harboring suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, the authors identify and quantify the impact of a successful attack on unemployment and wages. They find robust evidence that terror attacks have important economic costs. The results suggest that a successful attack causes an increase of 5.3 percent in unemployment, increases the likelihood that the district’s average wages fall in the quarter following an attack by more than 20.0 percent, and reduces the number of Palestinians working in Israel by 6.7 percent relative to its mean. Importantly, these effects are persistent and last for at least six months after the attack

Criminology · Demographic economics · Economic cost · Economic growth · Economics · Geography · Political science · Quarter (Canadian coin · Survey data collection · Terrorism · Unemployment · Violent crime · Health and Conflict Studies · Law · Political Conflict and Governance · Psychology · Terrorism, Counterterrorism, and Political Violence

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    Open Access•Claude Berrebi, Esteban F Klor•Economica•2010

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Unique citing works13
Citations per year0,81
Citation span2010 - 2024 (15)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 12

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