The price of terror: The effects of terrorism on stock market returns and volatility

ArticleinEconomics Letters 101(3):164-167 · December 2008with181 Reads
Impact Factor: 0.45 · DOI: 10.1016/j.econlet.2008.07.007


    In this paper we investigate the effects of terrorism on the financial markets. Evidence from six different financial markets shows that terror has a significant impact on both stock markets and the stock market volatility, and the magnitude of these effects are larger in emerging markets.