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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

    as
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    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:

    1. Akay, Alpaslan & Bargain, Olivier & Elsayed, Ahmed, 2018. "Everybody's a Victim? Global Terror, Well-Being and Political Attitudes," IZA Discussion Papers 11597, Institute for the Study of Labor (IZA).
    2. 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.

    More about this item

    Keywords

    Well-being; Terrorism; Regression Discontinuity Design; Differences-in-Differences;

    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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