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Does Terrorism Demoralize? Evidence from Israel |
Dmitri Romanov - Central Bureau of Statistics
Asaf Zussman - Hebrew University
Noam Zussman - Bank of Israel
Published at Economica Volume 79, Issue 313, pages 183–198, January 2012
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| Abstract |
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Terrorism is a form of warfare that is specifically designed to have far-reaching psychological effects
beyond the immediate victims. We study the effect of terrorism on the happiness of Israelis during a
recent period of severe violence with the Palestinians (the second Intifada). The identification
strategy is based on variation in the intensity of terrorism over time and location. Using individual
level happiness equations augmented with daily fatality figures, we show that terrorism had
practically no immediate or delayed effect on the happiness of Jewish Israelis, but adversely affected
the happiness of Arab citizens of Israel.
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