Targeted Killings: Evaluating the Effectiveness of a Counterterrorism Policy

Asaf Zussman and Noam Zussman ()
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Noam Zussman: Bank of Israel

No 2005.02, Bank of Israel Working Papers from Bank of Israel

Abstract: targeted killing (henceforth assassination) of members of Palestinian terrorist organizations was a major element in Israel’s counterterrorism effort during the Palestinian uprising which started in 2000. We evaluate the effectiveness of this policy indirectly by examining Israeli stock market reactions to assassinations. Our approach relies on the assumption that the market should react positively to news of effective counterterrorism measures but negatively to news of counterproductive ones. The main result of the analysis is that the market reacts strongly to assassinations of senior members in Palestinian terrorist organizations: it declines following attempts to assassinate political leaders but rises following attempts to assassinate military ones.

Keywords: Counterterrorism; Stock Market (search for similar items in EconPapers)
JEL-codes: G14 H56 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2005-01
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Citations: View citations in EconPapers (1)

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https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2005.02.pdf First version, 2005 (application/pdf)

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