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The Impact of Terrorism on Well-being: Evidence from the Boston Marathon Bombing

Author

Listed:
  • Andrew E Clark

    (Paris School of Economics and CNRS)

  • Orla Doyle

    (UCD School of Economics & UCD Geary Institute for Public Policy)

  • Elena Stancanelli

    (Paris School of Economics and CNRS)

Abstract

A growing literature concludes that terrorism impacts the economy, yet less is known about its impact on utility. This paper estimates the impact of the 2013 Boston Marathon Bombing on well-being, by exploiting representative U.S. daily data. Using both a regression discontinuity and an event study design, whereby the 2012 Boston marathon serves as a counterfactual, we find a sharp reduction in well-being, equivalent to a two percentage point rise in annual unemployment. The effect is stronger for women and those living in nearby States, but does not persist beyond one week, thus demonstrating the resilience of well-being to terrorism.

Suggested Citation

  • Andrew E Clark & Orla Doyle & Elena Stancanelli, 2017. "The Impact of Terrorism on Well-being: Evidence from the Boston Marathon Bombing," Working Papers 201708, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:201708
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    References listed on IDEAS

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    1. The Impact of Terrorism on Well-being: Evidence from the Boston Marathon Bombing
      by maximorossi in NEP-LTV blog on 2017-11-24 00:26:48

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    Cited by:

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    2. Frijters, Paul & Johnston, David W. & Knott, Rachel & Torgler, Benno, 2021. "Resilience to Disaster: Evidence from Daily Wellbeing Data," IZA Discussion Papers 14220, Institute of Labor Economics (IZA).
    3. David G. Blanchflower & Alex Bryson, 2022. "The Female Happiness Paradox," NBER Working Papers 29893, National Bureau of Economic Research, Inc.
    4. Guo, Shiqi & An, Jiafu, 2022. "Does terrorism make people pessimistic? Evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 155(C).
    5. Steinhardt, Max F., 2018. "The Impact of Xenophobic Violence on the Integration of Immigrants," IZA Discussion Papers 11781, Institute of Labor Economics (IZA).
    6. Akay, Alpaslan & Bargain, Olivier & Elsayed, Ahmed, 2020. "Global terror, well-being and political attitudes," European Economic Review, Elsevier, vol. 123(C).
    7. Keita, Sekou & Schewe, Paul, 2021. "Out of sight, out of mind? Terror in the home country, family reunification options, and the well-being of refugees," World Development, Elsevier, vol. 146(C).
    8. Morales, Juan S., 2021. "Legislating during war: Conflict and politics in Colombia," Journal of Public Economics, Elsevier, vol. 193(C).
    9. Alex Bryson & George MacKerron, 2017. "How Does Terrorism Affect Individuals’ Wellbeing?," DoQSS Working Papers 17-14, Quantitative Social Science - UCL Social Research Institute, University College London.
    10. Philip S. Morrison & Stephanié Rossouw & Talita Greyling, 2022. "The impact of exogenous shocks on national wellbeing. New Zealanders’ reaction to COVID-19," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(3), pages 1787-1812, June.
    11. Akay, Alpaslan & Bargain, Olivier & Elsayed, Ahmed, 2018. "Everybody's a Victim? Global Terror, Well-Being and Political Attitudes," Working Papers in Economics 733, University of Gothenburg, Department of Economics.

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    More about this item

    Keywords

    Well-being; Terrorism; Regression Discontinuity Design; Differences-in-Differences;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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