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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," Working Papers 416, University of Milano-Bicocca, Department of Economics, revised 17 Jul 2019.
  • Handle: RePEc:mib:wpaper:416
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    More about this item

    Keywords

    Terrorism; Well-being; Happiness; Democracy; Trust.;
    All these keywords.

    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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