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The Day after the Bomb: Well-being Effects of Terrorist Attacks in Europe

Emilio Colombo (), Valentina Rotondi () and Luca Stanca ()

No dis1902, DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo from Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS)

Abstract: We study the non-monetary costs of the terrorist attacks occurred in France, Belgium and Germany between 2010 and 2017. Using four waves of the European Social Survey, we find that individuals' well-being is significantly reduced in the aftermath of a terrorist attack. We explore possible mechanisms for this effect, finding that terrorist attacks determine a reduction in generalized trust, institutional trust, satisfaction with democracy and satisfaction with the government. Terrorist attacks are also found to increase negative attitudes towards migrants and perceived discrimination. However, contrary to expectations, the negative impact of terrorism on well-being is less strong for Muslim immigrants. We posit that this occurs because immigrants benefit more than natives from the institutional reaction following the attacks.

JEL-codes: H56 I31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-hap
Date: 2019
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