Based on a trivariate panel VAR and utilizing Generalized Impulse Responses, we explored the dynamic impacts of terrorism and crime risks on public order and safety spending across European countries during the period 1994-2006. Our findings suggest that both a shock in terrorism risk or in...

Within a panel VAR framework and utilizing generalized impulse response and forecast error variance decomposition analysis, we explore the dynamic effects of terrorism and crime on public order and safety spending across European countries during the period 1994-2006. Our findings show that a...

In this Policy Briefing, we discuss two important questions: (i) whether and how terrorism shocks are transmitted across international stock markets, (ii) what is the role of behavioral factors in explaining these stock market reactions. According to our findings terrorism shocks are indeed...