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Beyond the Headlines: The intangible costs of terrorism

Lookup NU author(s): Dr Harry PickardORCiD

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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).


Abstract

Do terrorist attacks affect life satisfaction and mental health? To explore this question, we analyse data on all casualty-causing terrorist incidents in Great Britain from 1992 to 2020, and combine this information with individual-level data from the British Household Panel Survey and the UK Household Longitudinal Study over the same period. To get as close as possible to a causal interpretation, we exploit variation within individuals, net of potential attack-specific and aggregate temporal factors, and report an array of different specifications and robustness tests. Our analysis reveals that geographic proximity to terrorist attacks decreases life satisfaction, particularly when the incidents occurred within the month before the interview. We also find that individuals with pre-existing mental vulnerabilities exhibit higher distress levels following a recent terrorism shock.


Publication metadata

Author(s): Pickard H, Bove V, Efthyvoulou G

Publication type: Article

Publication status: Published

Journal: Economica

Year: 2026

Volume: 93

Issue: 371

Pages: 1122-1144

Print publication date: 01/07/2026

Online publication date: 20/04/2026

Acceptance date: 08/04/2026

Date deposited: 23/05/2026

ISSN (print): 0013-0427

ISSN (electronic): 1468-0335

Publisher: Wiley-Blackwell Publishing Ltd.

URL: https://doi.org/10.1111/ecca.70049

DOI: 10.1111/ecca.70049


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Funding

Funder referenceFunder name
Economic and Social Research Council (ESRC grant number ES/V002333/1)
THE—Tuscany Health Ecosystem (CUP D63C22000400001), funded by the European Union under the Next Generation EU programme.

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