Concluding remarks
nThe
models perform surprisingly well
•Almost all
parameter estimates significant at 10% level or higher
•All parameter
estimates correct sign
nTerrorism
has an impact on urban structure
•Reduces
amount of land where capital is located
•Consistent
with both Rossi-Hansberg and simple urban model
•Estimated
impact is robust to different specifications
nCorrectly
signed but not significant in “differenced” model
•Limited
number of observations?
•Explore
alternatives when all data available