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Measuring Terrorism

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Author Info
Bruno S. Frey
Simon Luechinger

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Abstract

Terrorism will be high on the political agenda for many years to come. Various policies are open to a government fighting terrorism but, in any case, considerable costs are involved. In the competition for political support, the costs and benefits of anti-terrorism policies will be debated. Better information about terrorism and its consequences can improve policy outcome if there is electoral competition. Over the last few years, economic scholars have analysed the effects terrorist acts have on various aspects of the economy. The findings of these impact studies are summarised in this paper. They capture, however, only part of the overall utility losses. Hence, several approaches to value public goods and conceptual issues concerning their application to terrorism are discussed. In particular, the hedonic market approach, the averting behaviour method, the contingent valuation method and vote and popularity functions are reviewed. Further, an exploratory analysis of estimating individuals’ utility losses using life satisfaction or happiness data is presented. This paper also discusses a substantially different approach combining measurement and decision-making, namely popular referenda.

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Paper provided by Institute for Empirical Research in Economics - IEW in its series IEW - Working Papers with number iewwp171.

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Handle: RePEc:zur:iewwpx:171

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Related research
Keywords: Terrorism; Public Good; Cost-Benefit-Analysis; Willingness-to-Pay; Hedonic-Market- Approach; Averting-Behaviour-Method; Contingent-Valuation; Popularity Functions; Happiness; Referendum;

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Find related papers by JEL classification:
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Axel Dreher & Justina A.V. Fischer, 2008. "Decentralization as a disincentive for transnational terror? An empirical test," University of St. Gallen Department of Economics working paper series 2008 2008-01, Department of Economics, University of St. Gallen. [Downloadable!]
    Other versions:
  2. Ernst Fehr & Susanne Kremhelmer & Klaus M. Schmidt, . "Fairness and the Optimal Allocation of Ownership Rights," IEW - Working Papers iewwp224, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  3. Bruno S. Frey, . "Happiness Research: State and Prospects," IEW - Working Papers iewwp192, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  4. Aleksander Berentsen & Esther Bruegger & Simon Loertscher, . "Heterogeneity, Local Information, and Global Interaction," IEW - Working Papers iewwp182, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  5. Ernst Fehr & Klaus M. Schmidt, . "The Role of Equality, Efficiency, and Rawlsian Motives in Social Preferences: A Reply to Engelmann and Strobel," IEW - Working Papers iewwp179, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  6. Matthias Benz & Bruno S. Frey, . "The Value of Autonomy: Evidence from the Self-Employed in 23 Countries," IEW - Working Papers iewwp173, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  7. Bruno S. Frey & Simon Luechinger & Alois Stutzer, . "Calculating Tragedy: Assessing the Costs of Terrorism," IEW - Working Papers iewwp205, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  8. Enrico De Giorgi & Stefan Reimann, . "The ?-Beauty Contest: Choosing Numbers, Thinking Intervals," IEW - Working Papers iewwp183, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  9. Steffen Huck & Michael Kosfeld, . "The Dynamics of Neighbourhood Watch and Norm Enforcement," IEW - Working Papers iewwp199, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  10. Philipp C. Wichardt, . "An Application of Global Games to Signalling Models," IEW - Working Papers iewwp223, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  11. Thorsten Hens & P. Jean-Jacques Herings & Arkadi Predtetchinskii, . "Limits to Arbitrage when Market Participation Is Restricted," IEW - Working Papers iewwp176, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  12. Bruno S. Frey & Alois Stutzer, . "Making International Organizations More Democratic," IEW - Working Papers iewwp217, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  13. Patrick Leoni, . "Learning in Repeated Games without Repeating the Game," IEW - Working Papers iewwp215, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  14. Pavlo Blavatskyy, . "Why the Olympics have three prizes and not just one," IEW - Working Papers iewwp200, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  15. Bruno S. Frey & Margit Osterloh, . "Yes, Managers Should be Paid Like Bureaucrats," IEW - Working Papers iewwp187, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  16. Peter Woehrmann, . "A dynamic model of the financial–real interaction as a model selection criterion for nonparametric stock market prediction," IEW - Working Papers iewwp226, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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