Does Terrorism Demoralize? Evidence from Israel
Version of Record online: 13 DEC 2010
© 2010 The London School of Economics and Political Science
Volume 79, Issue 313, pages 183–198, January 2012
How to Cite
ROMANOV, D., ZUSSMAN, A. and ZUSSMAN, N. (2012), Does Terrorism Demoralize? Evidence from Israel. Economica, 79: 183–198. doi: 10.1111/j.1468-0335.2010.00868.x
- Issue online: 13 DEC 2011
- Version of Record online: 13 DEC 2010
- Final version received 30 April 2010.
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.