The Economic Cost of Harboring Terrorism

@inproceedings{Benmelech2009TheEC,
  title={The Economic Cost of Harboring Terrorism},
  author={Efraim Benmelech and Claude Berrebi and Esteban F. Klor},
  year={2009}
}
The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This paper aims to fill that gap by examining the economic costs of committing suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, we identify and quantify the impact of a successful attack on unemployment and wages. We find robust… CONTINUE READING

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Klor is a lecturer in the Department of Economics at the Hebrew University of Jerusalem, and a Research Affiliate at the Centre for Economic Policy Research (CEPR)

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