This paper uses a unique data set and advanced econometric methods to examine the effect of terrorism on financial markets of both sides of the barricade in the Israeli-Palestinian conflict. The main finding are: (1) Real economies on both sides suffered significantly during the intifada period;...

Inequality aversion and risk-aversion are widely assumed in economic models; however existing economic literature fails to distinguish between the two. This paper presents methodology and a laboratory experiment, which separates inequality aversion from risk aversion. In a set of laboratory...