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The price of terror: The effects of terrorism on stock market returns and volatility

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  • Arin, K. Peren
  • Ciferri, Davide
  • Spagnolo, Nicola

Abstract

In this paper we investigate the effects of terrorism on the financial markets. Evidence from six different financial markets shows that terror has a significant impact on both stock markets and the stock market volatility, and the magnitude of these effects are larger in emerging markets.

Suggested Citation

  • Arin, K. Peren & Ciferri, Davide & Spagnolo, Nicola, 2008. "The price of terror: The effects of terrorism on stock market returns and volatility," Economics Letters, Elsevier, vol. 101(3), pages 164-167, December.
    • Handle: RePEc:eee:ecolet:v:101:y:2008:i:3:p:164-167
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    References listed on IDEAS

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