Abstract
Abstract This study analyzes the impact of terror attacks on students’ academic achievement in Israel between 2001 and 2005, during the Second Intifada. Using within-student variation in exposure to terror attacks before exams, I find that a fatal terror attack before an exam adversely affects performance. The adverse effect, however, disappears for exams held five days or more after the attack. I explore potential explanations for these results, suggesting psychological impacts best explain the short-lived effect. Moreover, the temporary decrease in test scores does not affect the quality of diploma earned, suggesting no long-term effect on human capital accumulation.