Public Choice

, Volume 178, Issue 3–4, pp 493–512 | Cite as

Terrorism and subjective financial well-being: micro-level evidence from Pakistan

  • Khusrav Gaibulloev
  • Gerel Oyun
  • Javed YounasEmail author


This paper exploits individual-level data on self-reported financial situations and district-level information on terrorist attacks in Pakistan to examine how persistent exposure to terrorism affects subjective financial well-being. The study also explores the relationship between recurrent terrorist acts and an individual’s perception of the financial well-being of other people in the community. Our model accounts for myriad influences of terrorism and financial statuses both at the individual and district levels. We find that terrorism adversely impacts subjective financial well-being. In particular, its negative effects on perceived personal financial conditions appear to be stronger for less-educated persons and those living in urban areas.


Terrorism Financial well-being Risk Pakistan 

JEL classification

D14 D74 G40 



We are grateful to Todd Sandler and William F. Shughart II for their thoughtful comments. The article also benefited from comments by two anonymous reviewers and by participants at the 2018 Political Violence and Policy conference, University of Texas at Dallas. All remaining errors are ours.

Supplementary material

11127_2018_606_MOESM1_ESM.doc (1 mb)
Supplementary material 1 (DOC 1053 kb)


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsAmerican University of SharjahSharjahUAE
  2. 2.WylieUSA

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