Axel Dreher, Martin Gassebner, Paul Schaudt, 12 August 2017

Stricter immigration and visa policies are a common reaction to terrorist attacks. This column uses historical data from 20 OECD countries to show that while the number of terror attacks increased with the number of foreigners living in a host country, migrants were not more likely to become terrorists than the locals of the country in which they were living. The results also show that bans on Muslim immigration would be more likely to increase the risk of terror than make the domestic population safer.

Jon Danielsson, Morgane Fouché, Robert Macrae, 10 June 2016

The threat to the financial system posed by cyber risk is often claimed to be systemic. This column argues against this, pointing out that almost all cyber risk is microprudential. For a cyber attack to lead to a systemic crisis, it would need to be timed impeccably to coincide with other non-cyber events that undermine confidence in the financial system and the authorities. The only actors with enough resources to affect such an event are large sovereign states, and they could likely create the required uncertainty through simpler, financial means. 

Andrew Clark, Elena Stancanelli, 26 April 2016

Terrorism wreaks a terrible cost on societies. This column quantifies some of the effects by employing daily data on individual, self-reported emotional feelings combined with time allocation data from the American Time Use Survey. The focus is on the days before and after the 2013 Boston Marathon bombing. The data show a significant drop in well-being, driven by the responses of women and Massachusetts residents. Hours worked were not affected.

Peter Sands, 19 February 2016

A move is afoot to eliminate high denomination bills such as the €500 note. This column argues that the elimination would not, on its own, stem the flow of funds to support terrorism, but it is a necessary step on the road to restricting terrorist finance. While there are counter-arguments, they tend to argue for activities that involve breaking the law – in one way or another. 

Richard Baldwin, 25 December 2015

Team Vox wishes to thanks all its readers and contributors for making 2015 a great year for the site. Vox will post no new columns between 25 December 2015 and 2 January 2016. There is, however, plenty to catch up on. This column presents a list of topical columns written by leading economists in 2015. It also presents a few statistics on Vox’s popularity.

Eric Gould, Esteban Klor, 16 December 2015

Hate crimes against Muslims flared up in a number of western countries immediately after the terror attacks in Paris. This column presents evidence from the US after 9/11 suggesting that such a backlash can create a less assimilated and more isolated Muslim community. Terror attacks against western targets may have a long-term political and socio-economic impact on this generation and possibly the next.

Eric Gould, Esteban Klor, 30 January 2012

How does radical Islamic terrorism impact Muslim immigrants in the West? The backlash against Muslims in the US after the terrorist attacks of 9/11 damaged assimilation among Muslim immigrants, argue the authors of CEPR DP8797 – and they present strong evidence to prove it.

Nauro Campos, Martin Gassebner, 07 April 2009

Conventional explanation attribute terrorism to lack of income or liberal democracy. This column argues that political instability is a better predictor of international terrorism. It says that civil wars and guerrilla warfare provide training grounds in which terrorists amass the personnel and skills needed to commit terrorist acts. Reducing political violence might reduce subsequent terrorism.

Natalie Chen, Liam Graham, Andrew Oswald, 17 August 2008

Higher energy prices are likely to reduce profitability of industry and thus could bring about an economic downturn. The authors of DP 6937 experiment with terrorist acts as an instrumental variable, in order to examine the relationship between the price of oil, terrorist incidents and the resultant effects on profitability and margins.


CEPR and the Paris School of Economics are jointly organizing (with financial assistance from Agence Nationale pour la Recherche, ANR) a one and a half day workshop focusing on conflicts, globalization and development. The workshop will take place at the University Paris 1 Panthéon-Sorbonne campus of the Paris School of Economics. Papers are being sought that focus on the following topics: · Causes and consequences of violent conflicts: civil wars, interstate wars, terrorism, rebellion... · Arms trade · International trade, capital flows and violent conflicts · Institutions and violent conflicts · Multilateral institutions and conflicts . Political versus economic causes of conflicts...

Fernanda Llussá, José Tavares, 10 December 2007

We know too little about the causes and consequences of terrorism and what we do know is not listened to. For example, existing empirical and theoretical research on the economics of terrorism contradicts common wisdom that terrorists are irrational misanthropes with little education and low income. More research is needed.

Alan B. Krueger, 11 September 2007

To economists, criminals are people with a low opportunity cost and few legitimate opportunities. Terrorism is different. Terrorists and their organisations seek to make a political statement; terrorists arise when there are severe political grievances with no alternatives for pursing those grievances.