Emotions and Inventor Productivity: Evidence from Terrorist Attacks
48 Pages Posted: 3 Feb 2019 Last revised: 9 Sep 2020
Date Written: September 9, 2020
We examine whether the emotional shocks associated with terrorist attacks affect local inventors’ productivity. We find that high-fatality attacks make inventors less innovative, and low-fatality attacks make them more innovative. Inventors living in high risk-taking environments have greater increase in productivity following low-fatality attacks, while less decrease in productivity following high-fatality attacks. Further, the effect of terrorist attacks on inventor productivity mainly comes from exploratory innovation which involves more risks. Inventors affected by high-fatality attacks are also more likely to move to places without any significant terrorist attack history, but there is no such effect for low-fatality attacks.
Keywords: Terrorist attacks; Emotion; Inventor productivity
JEL Classification: G39, O31
Suggested Citation: Suggested Citation