The Consequences of Terrorism for Financial Markets: What Do We Know?

13 Pages Posted: 25 May 2006

See all articles by George Andrew Karolyi

George Andrew Karolyi

Cornell University - SC Johnson College of Business

Date Written: May 7, 2006

Abstract

The objective of this article is to outline what we, as researchers, know and, more importantly, what we do not yet know about the consequences of terrorism for financial markets. I argue that a number of the efforts used to assess quantitatively the risk of terrorist attacks are limited in scope and are hampered by the limits of the databases used to operationalize such models. I also describe some of the most recent research that has sought to measure the magnitude of the impact of terrorist attacks on financial markets. Most of them have focused on the events surrounding the September 11, 2001 attacks, though a few have broadened the perspective over time and for countries beyond the U.S.

Keywords: Terrorism, financial markets

JEL Classification: F30, G14, G15

Suggested Citation

Karolyi, George Andrew, The Consequences of Terrorism for Financial Markets: What Do We Know? (May 7, 2006). Available at SSRN: https://ssrn.com/abstract=904398 or http://dx.doi.org/10.2139/ssrn.904398

George Andrew Karolyi (Contact Author)

Cornell University - SC Johnson College of Business ( email )

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HOME PAGE: http://https://www.johnson.cornell.edu/faculty-research/faculty/gak56/

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