סמינר מחלקתי בכלכלת נדל״ן ומדעי האיזור

 יעל אלסטר, האוניברסיטה העברית בירושלים

Abstract
This study provides a housing market perspective on the e¤ective-
ness of counter-terrorism. Relying on detailed micro data from Israel,
we show that the deployment of the Iron Dome anti-rocket system: (1)
eliminated the negative e¤ect of rocket attacks launched from the Gaza
Strip on house prices in southern Israel; (2) brought about a decrease
in the premium associated with in-house shelters in the south; (3) led
to house price appreciation in northern Israeli localities threatened by
rocket …re from Lebanon. Overall, the results strongly indicate that
the Iron Dome system is perceived by the Israeli public as e¤ective in
countering the rocket threat.