Abstract

http://ssrn.com/abstract=878544
 
 

References (20)



 
 

Citations (12)



 


 



The Impact of Terrorism across Industries: An Empirical Study


Claude Berrebi


RAND Corporation; Hebrew University - The Federmann School of Public Policy and Government; University of California, Los Angeles (UCLA) - Department of Economics; Princeton University - Department of Economics; RAND Corporation - Labor and Population Studies

Esteban F. Klor


Hebrew University of Jerusalem - Department of Economics; Centre for Economic Policy Research (CEPR)

November 2005

CEPR Discussion Paper No. 5360

Abstract:     
This paper uses scoring matching techniques and event study analysis to elucidate the impact of terrorism across different economic sectors. Using the Israeli-Palestinian conflict as a case study, we differentiate between Israeli companies that belong to the defense, security or anti-terrorism related industries and other companies. The findings show that whereas terrorism has a significant negative impact on non defense-related companies, the overall effect of terrorism on defense and security-related companies is significantly positive. Similarly, using panel data on countries' defense expenditures and imports from Israel, we find that terror fatalities in Israel have a positive effect on Israeli exports of defense products. These results suggest that the expectation of future high levels of terrorism has important implications for resource allocation across industries.

Number of Pages in PDF File: 40

Keywords: Terrorism, stocks returns, defense sector

JEL Classification: D74, G14, L64, P16

working papers series


Date posted: January 26, 2006  

Suggested Citation

Berrebi, Claude and Klor, Esteban F., The Impact of Terrorism across Industries: An Empirical Study (November 2005). CEPR Discussion Paper No. 5360. Available at SSRN: http://ssrn.com/abstract=878544

Contact Information

Claude Berrebi (Contact Author)
RAND Corporation ( email )
Santa Monica, CA
310-393-0411 (Phone)
HOME PAGE: http://www.rand.org/about/people/b/berrebi_claude.html
Hebrew University - The Federmann School of Public Policy and Government
Hebrew University
Mount Scopus
Jerusalem, 91905
Israel
University of California, Los Angeles (UCLA) - Department of Economics ( email )
Box 951477
Los Angeles, CA 90095-1477
United States
HOME PAGE: http://www.econ.ucla.edu/people/Faculty/Berrebi.html
Princeton University - Department of Economics ( email )
Industrial Relations Section
Princeton, NJ 08544
United States
609-258-4777 (Phone)
609-258-2907 (Fax)
HOME PAGE: http://www.princeton.edu/~cberrebi
RAND Corporation - Labor and Population Studies ( email )
1776 Main Street
Santa Monica, CA
United States
310-393-0411 (Phone)
Esteban F. Klor
Hebrew University of Jerusalem - Department of Economics ( email )
Mount Scopus
Jerusalem, 91905
Israel
+972 2 588 3143 (Phone)
+972 2 581 6071 (Fax)
HOME PAGE: http://economics.huji.ac.il/facultye/klor/klor.htm
Centre for Economic Policy Research (CEPR) ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Feedback to SSRN


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Downloads: 42
References:  20
Citations:  12

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