Eckstein, Zvi; Tsiddon, Daniel - C.E.P.R. Discussion Papers - 2004
relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income … and consumption go down as well. Governments can offset terror by putting tax revenues into the production of security …, at the level of the death toll by about the same size as due to car accidents, is expected to decrease annual consumption …