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Terrorism Risk Concern in Europe

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  • Konstantinos Drakos
  • Cathérine Müller

Abstract

We explore whether differences of terrorism risk perception across all European countries reflect their underlying differences in terrorism risk, which we decompose into a long term and innovation component. We employ longitudinal country-level data on terrorism risk concern and our modeling approach is motivated by the Bayesian framework. We conclude that the observed risk perception variation is significantly explained by the long term terrorism countries face, while the cyclical part of terrorism activity does not affect risk perception.

Suggested Citation

  • Konstantinos Drakos & Cathérine Müller, 2010. "Terrorism Risk Concern in Europe," Economics of Security Working Paper Series 37, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diweos:diweos37
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.358106.de/diw_econsec0037.pdf
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    Cited by:

    1. Olaf J. de Groot & Konstantinos Drakos & Cathérine Müller, 2011. "How Rational Is the Response of Individuals to the Threat of Terrorism in Europe?," EUSECON Policy Briefing 9, DIW Berlin, German Institute for Economic Research.
    2. Michael Brzoska & Raphael Bossong & Eric van Um, 2011. "Security Economics in the European Context: Implications of the EUSECON Project," Economics of Security Working Paper Series 58, DIW Berlin, German Institute for Economic Research.

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