A Note on the Effect of Terrorism on Economic Sentiment |
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| Authors: | Konstantinos Drakos Christos Kallandranis |
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| Affiliation: | 1. Department of Accounting and Finance, Athens University of Economics and Business, Athens, Greecekdrakos@aueb.gr;3. Department of Accounting, Finance and Economics, Regent’s University London, London, UK |
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| Abstract: | This study documents that unforeseen events like terrorist attacks can be linked to the formation of Economic Sentiment after controlling for sentiment’s economic drivers. By utilizing dynamic panel techniques, the Economic Sentiment Indicator, as well as one of its constituents Consumer Sentiment, for a pan-European panel of 27 countries appear to be negatively influenced by terrorism activity. Moreover, these negative effects are significant only in the post-9/11 era. |
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| Keywords: | Economic Sentiment Terrorist activity Dynamic panel |
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