Economic Gains vs. Moral Costs: Proximity to Nazi Death Camp Treblinka

The transfer and redistribution of wealth during violent conflicts is common, yet its local-level effects remain largely unexplored.

We examine the long-term impact on communities surrounding the Nazi death camp Treblinka in Poland, where nearly a million Jews were murdered. In this specific case, victims' assets sometimes flowed into the hands of locals.

Our analysis leverages the exogenous location of Treblinka to identify its enduring effects:

• Closer Proximity: Communities nearer to the site experienced a significant real estate boom.
• No Development Correlation: This economic surge did not translate into broader social or economic advancement for these communities.
• Increased Anti-Semitism: These areas also displayed stronger backing for an anti-Semitic party, the League of Polish Families.

These findings highlight an overlooked challenge in post-conflict reconstruction and reconciliation: how tangible economic benefits from past atrocities may coexist with persistent societal resentment.