The Economic Cost of Harboring Terrorism

  title={The Economic Cost of Harboring Terrorism},
  author={Efraim Benmelech and Claude Berrebi and Esteban F. Klor},
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

Figures and Tables from this paper.


Publications referenced by this paper.

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)

  • 2010

The impact of terrorism and conflicts on growth in Asia

Gaibulloev, Khusrav, Todd Sandler.
  • Economics and Politics 21 (3): 359-83.
  • 2009

Economic consequences of terrorism

Press. Sandler, Todd, Walter Enders
  • A chronology of events. Ames: Iowa State
  • 2008

Kto Kogo? A cross-country study of the origins and targets of terrorism

Krueger, B. Alan, David D. Laitin.
  • Terrorism, economic development, and political openness, ed. P. Keefer and N. Loayza, 148-73. Cambridge, UK: Cambridge University Press. at RAND LIBRARY on May 4, 2010
  • 2008

The struggle for Palestinians hearts and minds: Violence and public opinion in the Second Intifada

Jaeger, A. David, Esteban F. Klor, Sami H. Miaari, M. Daniele Paserman.
  • Working Paper 13956, National Bureau of Economic Research, Cambridge, MA.
  • 2008

Human capital and the productivity of suicide bombers

Benmelech, Efraim, Claude Berrebi.
  • Journal of Economic Perspectives 21 (3): 223-38.
  • 2007