Financial Decisions under the Shadow of Terrorism

Christelis, D. and Georgarakos, D. (2013) Financial Decisions under the Shadow of Terrorism. Working Paper. Social Science Research Network.

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Publisher's URL: https://doi.org/10.2139/ssrn.1317086

Abstract

We investigate, using the 2002 US Health and Retirement Study, individuals’ insecurity and expectations about terrorism, and their effects on household financial decisions. We find that those without any military experience, the less educated, the more religious and females worry a lot about their safety. In addition, fear of terrorism discourages households from investing in stocks and owning a business, while it makes them more likely to buy term life insurance.

Item Type:Research Reports or Papers (Working Paper)
Keywords:Terrorism, expectations, household finance, demand analysis.
Status:Published
Glasgow Author(s) Enlighten ID:Christelis, Dr Dimitris
Authors: Christelis, D., and Georgarakos, D.
Subjects:H Social Sciences > HB Economic Theory
College/School:College of Social Sciences > Adam Smith Business School > Economics
Publisher:Social Science Research Network
Published Online:17 December 2008

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