The Economic Consequences of Terrorism

By P. Lenain, M. Bonturi, Vincent Koen. 2002

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The open society assesses its enemies: shocks, disasters and terrorist attacks☆ (2004, background): “Lenain et al. (2002) identify three possible channels through which terrorism may influence macroeconomic activity: decreased insurance coverage as a result of the perception of increased risk, larger trade costs possibly leading to lower levels of international trade and larger security and defense”