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Household expenditure in the wake of terrorism: Evidence from high frequency in-home-scanner data

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  • Mirza, Daniel
  • Stancanelli, Elena
  • Verdier, Thierry

Abstract

This paper adds to the scant literature on the impact of terrorism on consumer behaviour, focusing on household spending on goods that are sensitive to brain-stress neurocircuitry. These include sweet- and fat-rich foods but also home necessities and female-personal-hygiene products, the only female-targeted good in our data. We examine unique continuous in-home-scanner expenditure data for a representative sample of about 15,000 French households, observed in the days before and after the terrorist attack at the Bataclan concert-hall. We find that the attack increased expenditure on sugar-rich food by over 5% but not that on salty food or soda drinks. Spending on home maintenance products went up by almost 9%. We detect an increase of 23.5% in expenditure on women’s personal hygiene products. We conclude that these effects are short-lived and driven by the responses of households with children, youths, and those residing within a few-hours ride of the place of the attack.

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  • Mirza, Daniel & Stancanelli, Elena & Verdier, Thierry, 2022. "Household expenditure in the wake of terrorism: Evidence from high frequency in-home-scanner data," Economics & Human Biology, Elsevier, vol. 46(C).
  • Handle: RePEc:eee:ehbiol:v:46:y:2022:i:c:s1570677x22000466
    DOI: 10.1016/j.ehb.2022.101150
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    Cited by:

    1. Stancanelli, Elena G. F., 2023. "British Voting Intentions and the Far Reach of 11 September Terrorist Attacks in New York," IZA Discussion Papers 16120, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Conflict economics; Household economics; Food consumption; Stress;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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