Abstract
This paper studies the persistence of the effects of terrorist attacks on the urban structure of a region. With this aim, a dynamic differences-in-differences approach is applied to the 251 municipalities in the Basque Country autonomous community in Spain during 1986-2014. Our results suggest that terrorism had a negative and transitory effect on population growth. Attacks with casualties implied more adverse shocks in the very short run. We also show that terrorist attacks had more significant effects in bigger municipalities and in provinces where nationalist political parties had weaker support. Finally, we provide evidence of spatial effects derived from violence in neighboring municipalities.
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