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date: 21 October 2020

Abstract and Keywords

Analyses of the costs and consequences of conflict usually focus on either civil wars or interstate conflict. The 9/11 attacks, however, have heightened interest regarding the costs of terrorism, a specific form of conflict in which violence is directed toward noncombatants or civilians who generally are not related to the political target of the perpetrating group. While terrorism can be seen as a specific tactic employed in internal and external conflicts, the effects of such violence have been studied separately. This article surveys the existing evidence of the costs of those terrorist acts that are perpetrated by nonstate parties or subnational groups, and discusses the various methodological issues involved. It differentiates between macroeconomic and microeconomic consequences of terrorism, and examines their consequences across different economies.

Keywords: 9/11 attacks, terrorist acts, economic costs

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