We assess the cost of different types of terrorist attacks on the growth of output and of its components. Private Consumption and Private Investment are significantly and negatively affected by all terror indicators, and the largest impact is respectively associated with the number of victims or...

We use aggregate country data as well as individual level survey to uncover, for the first time, the effect of extreme events such as natural disasters and terrorist attacks on entrepreneurial activity. We find that natural disasters and terrorist attacks influence individual perceptions of the...