Does Terrorism Demoralize? Evidence from Israel

16 Pages Posted: 15 Dec 2011

See all articles by Dmitri Romanov

Dmitri Romanov

Government of the State of Israel - Israel Central Bureau of Statistics

Asaf Zussman

Hebrew University of Jerusalem - Department of Economics

Noam Zussman

Bank of Israel

Date Written: January 2012

Abstract

Terrorism is a form of warfare that is specifically designed to have far‐reaching psychological effects beyond the immediate victims. We study the effect of terrorism on the happiness of Israelis during a recent period of severe violence with the Palestinians (the second Intifada). The identification strategy is based on variation in the intensity of terrorism over time and location. Using individual level happiness equations augmented with daily fatality figures, we show that terrorism had practically no immediate or delayed effect on the happiness of Jewish Israelis, but adversely affected the happiness of Arab citizens of Israel.

Suggested Citation

Romanov, Dmitri and Zussman, Asaf and Zussman, Noam, Does Terrorism Demoralize? Evidence from Israel (January 2012). Economica, Vol. 79, Issue 313, pp. 183-198, 2012. Available at SSRN: https://ssrn.com/abstract=1972750 or http://dx.doi.org/10.1111/j.1468-0335.2010.00868.x

Dmitri Romanov (Contact Author)

Government of the State of Israel - Israel Central Bureau of Statistics ( email )

Israel

Asaf Zussman

Hebrew University of Jerusalem - Department of Economics ( email )

Israel

Noam Zussman

Bank of Israel ( email )

P.O. Box 780
Jerusalem, 91907
Israel

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