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The Day after the Bomb: Well-being Effects of Terrorist Attacks in Europe

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  • Emilio Colombo
  • Valentina Rotondi
  • Luca Stanca

Abstract

We study the non-monetary costs of the terrorist attacks occurred in France, Belgium and Germany between 2010 and 2017. Using four waves of the European Social Survey, we find that individuals' well-being is significantly reduced in the aftermath of a terrorist attack. We explore possible mechanisms for this effect, finding that terrorist attacks determine a reduction in generalized trust, institutional trust, satisfaction with democracy and satisfaction with the government. Terrorist attacks are also found to increase negative attitudes towards migrants and perceived discrimination. However, contrary to expectations, the negative impact of terrorism on well-being is less strong for Muslim immigrants. We posit that this occurs because immigrants benefit more than natives from the institutional reaction following the attacks.

Suggested Citation

  • Emilio Colombo & Valentina Rotondi & Luca Stanca, 2019. "The Day after the Bomb: Well-being Effects of Terrorist Attacks in Europe," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1902, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
  • Handle: RePEc:dis:wpaper:dis1902
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    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.

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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