The Impact of Terrorism on Individual Well-being: Evidence from the Boston Marathon Bombing

In this Department of Economics Seminar, Elena Stancanelli, from the Paris School of Economics discusses her paper on The Impact of Terrorism on Individual Well-being: Evidence from the Boston Marathon Bombing.

 Abstract:

A growing literature has concluded that terrorism affects the economy, yet less is known about its impact on individual welfare. This paper estimates the impact of the 2013 Boston Marathon Bombing on well-being, exploiting representative daily data from the American Time Use Survey and Well-Being Supplement. Using a combined regression discontinuity and differences-in-differences design, with the 2012 Boston marathon as a counterfactual, we find an immediate reduction in well-being of half a standard deviation. In particular, happiness declined sharply and stress rose significantly. While the effects do not persist beyond one week, they may entail adverse health and economic consequences.