Household Expenditure in the Wake of Terrorism: evidence from high frequency in-home-scanner data

Pre-print, Working paper: This paper adds to the scant literature on the impact of terrorism on consumer behavior, focusing on household spending on goods that are sensitive to brain-stress neurocircuitry. These include sweet-and fat-rich foods but also home necessities and female-personal-hygiene products, the only female-targeted good in our data. We examine unique continuous in-homescanner expenditure data for a representative sample of about 15,000 French households, observed in the days before and after the terrorist attack at the Bataclan concert-hall. We find that the attack increased expenditure on sugar-rich food by over 5% but not that on salty food or soda drinks. Spending on home maintenance products went up by almost 9%. We detect an increase of 23.5% in expenditure on women's personal hygiene products. We conclude that these effects are short-lived and driven by the responses of households with children, youths, and those residing within a few-hours ride of the place of the attack.

Author(s)

Daniel Mirza, Elena Stancanelli, Thierry Verdier

Date of publication
  • 2022
Keywords JEL
D1 D12 F52 I12
Keywords
  • Household economics
  • Conflict economics
  • Stress
  • Food Consumption
Internal reference
  • PSE Working Papers n°2022-14
Pages
  • 50 p.
Version
  • 1