Fear of the dark: How terrorist events affect trust in the long run

Elisa Borghi, Michela Braga () and Francesco Scervini

No 20149, BAFFI CAREFIN Working Papers from BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy

Abstract: In this paper, we provide new evidence on whether individuals differ in their level of trust depending on their exposure to unexpected terrorist attacks during crucial life phases. In line with the well-grounded psychological theories on the formation of human beliefs, attitudes, and values, we find that exposure to traumatic and violent events in the two essential stages of human development "adolescence and early adulthood" reduces trust in other people. The formed values tend to be persistent over time, and the results are robust to several checks.

Keywords: Social capital; Trust; Terrorism; Value formation (search for similar items in EconPapers)
JEL-codes: A13 Z1 (search for similar items in EconPapers)
Pages: 37
Date: 2020
New Economics Papers: this item is included in nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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