IDEAS home Printed from https://ideas.repec.org/a/bla/obuest/v82y2020i3p526-548.html
   My bibliography  Save this article

The Impact of Terrorism on Social Capital: Evidence from the 2015 Charlie Hebdo Paris Shooting

Author

Listed:
  • Shawn J. McCoy
  • Ian K. McDonough
  • Punarjit Roychowdhury

Abstract

We examine the impact of terrorism on social capital by exploiting variation in the 2014 European Social Survey administration dates coupled with the 2015 Charlie Hebdo attack in Paris, France. Using the difference‐in‐differences estimator, we find that the attack had a positive, causal impact on the overall level of social capital among French respondents. Further, the effect seems to be driven by an increase in institutional and interpersonal trust, as well as by engagement in social networks. This rise in social capital peaks in the immediate aftermath of the terrorist attack but subsequently decays to pre‐attack levels within approximately one month.

Suggested Citation

  • Shawn J. McCoy & Ian K. McDonough & Punarjit Roychowdhury, 2020. "The Impact of Terrorism on Social Capital: Evidence from the 2015 Charlie Hebdo Paris Shooting," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 526-548, June.
    • Handle: RePEc:bla:obuest:v:82:y:2020:i:3:p:526-548
    DOI: 10.1111/obes.12343
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/obes.12343
    Download Restriction: no
    File URL: https://libkey.io/10.1111/obes.12343?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
    2. Robert Metcalfe & Nattavudh Powdthavee & Paul Dolan, 2011. "Destruction and Distress: Using a Quasi‐Experiment to Show the Effects of the September 11 Attacks on Mental Well‐Being in the United Kingdom," Economic Journal, Royal Economic Society, vol. 121(550), pages 81-103, February.
    3. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    4. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, February.
    5. Forte, Anabel & Peiró-Palomino, Jesús & Tortosa-Ausina, Emili, 2015. "Does social capital matter for European regional growth?," European Economic Review, Elsevier, vol. 77(C), pages 47-64.
    6. José G. Montalvo, 2011. "Voting after the Bombings: A Natural Experiment on the Effect of Terrorist Attacks on Democratic Elections," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1146-1154, November.
    7. Blomberg, S. Brock & Hess, Gregory D. & Weerapana, Akila, 2004. "Economic conditions and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 463-478, June.
    8. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    9. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    10. Eric D. Gould & Esteban F. Klor, 2016. "The Long‐run Effect of 9/11: Terrorism, Backlash, and the Assimilation of Muslim Immigrants in the West," Economic Journal, Royal Economic Society, vol. 126(597), pages 2064-2114, November.
    11. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
    12. Eric D. Gould & Esteban F. Klor, 2016. "The Long‐run Effect of 9/11: Terrorism, Backlash, and the Assimilation of Muslim Immigrants in the West," Economic Journal, Royal Economic Society, vol. 126(597), pages 2064-2114, November.
    13. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    14. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    15. Gassebner, Martin & Jong-A-Pin, Richard & Mierau, Jochen O., 2008. "Terrorism and electoral accountability: One strike, you're out!," Economics Letters, Elsevier, vol. 100(1), pages 126-129, July.
    16. Paschalis Arvanitidis & Athina Economou & Christos Kollias, 2016. "Terrorism’s effects on social capital in European countries," Public Choice, Springer, vol. 169(3), pages 231-250, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Smith, Tyler & Coupé, Tom, 2021. "The Mental Health Cost of Terrorism. A Replication Study of Kim and Albert Kim (Health Economics, 2018)," International Journal for Re-Views in Empirical Economics (IREE), ZBW - Leibniz Information Centre for Economics, vol. 5(2021-1), pages 1-11.
    3. Xue, Xindong & Reed, W. Robert & Menclova, Andrea, 2020. "Social capital and health: a meta-analysis," Journal of Health Economics, Elsevier, vol. 72(C).
    4. Tyler Smith & Tom Coupé, 2020. "The Mental Health Cost of Terrorism: A Replication of Kim and Albert Kim (Health Economics, 2018)," Working Papers in Economics 20/21, University of Canterbury, Department of Economics and Finance.
    5. Roychowdhury, Punarjit, 2021. "Too unwell to trust? The effect of mental health on social trust in Europe," Economics & Human Biology, Elsevier, vol. 42(C).
    6. Timothy Wilson & Ilan Noy, 2023. "Fifty years of peril: A comprehensive comparison of the impact of terrorism and disasters linked to natural hazards (1970–2019)," Global Policy, London School of Economics and Political Science, vol. 14(5), pages 647-662, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emilio Colombo & Valentina Rotondi & Luca Stanca, 2022. "The Day After the Bomb: Well-Being Effects of Terrorist Attacks in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 115-132, February.
    2. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    3. Andrew E. Clark & Orla Doyle & Elena Stancanelli, 2017. "The Impact of Terrorism on Well-being: Evidence from the Boston Marathon Bombing," Working Papers 201717, School of Economics, University College Dublin.
    4. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.
    5. Llussá, Fernanda & Tavares, José, 2011. "Which terror at which cost? On the economic consequences of terrorist attacks," Economics Letters, Elsevier, vol. 110(1), pages 52-55, January.
    6. Abel Brodeur, 2018. "The Effect of Terrorism on Employment and Consumer Sentiment: Evidence from Successful and Failed Terror Attacks," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 246-282, October.
    7. Thomas Gries & Tim Krieger & Daniel Meierrieks, 2011. "Causal Linkages Between Domestic Terrorism and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 493-508, June.
    8. Clark, Andrew & Stancanelli, Elena, 2017. "Americans’ Responses to Terrorism and Mass-Shooting: Evidence from the American Time Use Survey and Well-Being Module," GLO Discussion Paper Series 26, Global Labor Organization (GLO).
    9. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
    10. Benny Geys & Øystein Hernæs, 2021. "Party leaders and voter responses to political terrorism," Public Choice, Springer, vol. 187(3), pages 481-499, June.
    11. Tim Krieger & Daniel Meierrieks, 2011. "What causes terrorism?," Public Choice, Springer, vol. 147(1), pages 3-27, April.
    12. Kenneth R. Ahern, 2018. "The Importance of Psychology in Economic Activity: Evidence from Terrorist Attacks," NBER Working Papers 24331, National Bureau of Economic Research, Inc.
    13. Gavious, Ilanit, 2022. "The economic consequences of violence against civilians: Developing economic resilience to violence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).
    14. Yasir Khan & Cai ShuKai & Taimoor Hassan & Jawed Kootwal & Muhammad Nisar Khan, 2021. "The links between renewable energy, fossil energy, terrorism, economic growth and trade openness: the case of Pakistan," SN Business & Economics, Springer, vol. 1(9), pages 1-25, September.
    15. Syed Abdul Rehman KHAN & Zhang YU, 2020. "The Impact of Terrorism on Economics and Logistics Performance: An Empirical Study from the Perspective of SAARC Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 99-117, December.
    16. Dongyoung Kim & Young‐I1 Albert Kim, 2018. "Mental health cost of terrorism: Study of the Charlie Hebdo attack in Paris," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1-14, January.
    17. Gok, Ibrahim Yasar & Demirdogen, Yavuz & Topuz, Sefa, 2020. "The impacts of terrorism on Turkish equity market: An investigation using intraday data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    18. Machin, Stephen & Ivandic, Ria & Kirchmaier, Tom, 2019. "Jihadi Attacks, Media and Local Hate Crime," CEPR Discussion Papers 13743, C.E.P.R. Discussion Papers.
    19. Peter Egger & Martin Gassebner, 2015. "International terrorism as a trade impediment?," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 42-62.
    20. Endrich, Marek, 2020. "The good tourist, the bad refugee and the ugly German: Xenophobic activities and tourism," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224604, Verein für Socialpolitik / German Economic Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:82:y:2020:i:3:p:526-548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sfeixuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.