Helmut-Schmidt-Universität - Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre, Hamburg
Using a new data set that captures the share of reporting on terrorism, we explore the nexus between terrorist attacks and the news. It turns out that terrorism mainly influences news reports through the number of incidents. Regarding the reverse causality, we provide evidence that the share of the news devoted to terrorism Granger-causes further terrorist activities. However, short-run and medium-run effects differ: in the short run media coverage on terror only has an impact on the severity of terror attacks, while it affects the number of terror attacks in the long haul. These observations are consistent with the idea of competition between terrorist groups.