NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Economic Cost of Harboring Terrorism

Efraim Benmelech, Claude Berrebi, Esteban F. Klor

NBER Working Paper No. 15465
Issued in October 2009

---- Acknowledgements -----

We are grateful to Daniele Paserman, Todd Sandler, two anonymous referees, and participants of the 2009 Conference on Terrorism and Policy at the University of Texas at Dallas and the 2009 meeting of the Network for the Economic Analysis of Terrorism (NEAT) in Brussels for very helpful suggestions. We thank the Israeli Security Agency for providing us with their data on suicide terrorists, and the Palestinian Central Bureau of Statistics for the data from the Labor Force Survey. Benmelech thanks the Warburg Fund at Harvard University for financial support. Berrebi and Klor are grateful for the support from the "New Agenda for European Security Economics (EUSECON)" project funded by the European Commission under the 7th Framework Programme. Klor thanks the warm hospitality of Boston University and the National Bureau of Economic Research while he was working on this project. This document has not been subject to formal review by the RAND Corporation. The opinions and conclusions are solely those of the authors and do not necessarily represent the opinions or policy of the RAND Corporation, nor of its research clients and sponsors, nor of the National Bureau of Economic Research.

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