In this thesis I study the effects of Western terrorist attacks on Western country-level market returns in select 15 countries using a sample of over 3000 attacks between 1970-2018. I find that terrorist attacks in general do not produce a statistically significant effect on market returns. This result does not change when only observing attacks with a high number of casualties. However, terrorist attacks that have caused major economic damage have a significant effect on market returns in five of the countries observed.
