Household economic decisions under the shadow of terrorism : [This Version: January 4, 2009]
- We investigate, using the 2002 US Health and Retirement Study, the factors influencing individuals’ insecurity and expectations about terrorism, and study the effects these last have on households’ portfolio choices and spending patterns. We find that females, the religiously devout, those equipped with a better memory, the less educated, and those living close to where the events of September 2001 took place worry a lot about their safety. In addition, fear of terrorism discourages households from investing in stocks, mostly through the high levels of insecurity felt by females. Insecurity due to terrorism also makes single men less likely to own a business. Finally, we find evidence of expenditure shifting away from recreational activities that can potentially leave one exposed to a terrorist attack and towards goods that might help one cope with the consequences of terrorism materially (increased use of car and spending on the house) or psychologically (spending on personal care products by females in couples).
Author: | Dimitris Christelis, Dimitris Georgarakos |
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URN: | urn:nbn:de:hebis:30-62357 |
Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,56 |
Series (Serial Number): | CFS working paper series (2008, 56) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2008 |
Year of first Publication: | 2008 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2009/01/29 |
Tag: | Demand Analysis; Expectations; Household Finance; Terrorism |
GND Keyword: | USA; Haushalt; Internationaler Terrorismus; Ausgaben; Geschichte 2002 |
Issue: | version January 4, 2009 |
Page Number: | 41 |
Note: | First Version: December 16, 2008 ; This Version: January 4, 2009 |
HeBIS-PPN: | 210310456 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |