The long-lasting nature of the Palestinian-Israeli conflict has caused a severe slowdown of economic activity within and between the two economies involved. Palestine is currently afflicted with economic stagnation and structural bottlenecks - namely sharp income reductions, low investors'...

In this paper we assess the effectiveness of suicide attacks and targeted killings in the Second Intifada. We find evidence that the targeted killings of Palestinian leaders by Israel reduce realized Palestinian violence. We find, however, that intended Palestinian violence is increasing at low...