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The Benefit-Cost Analysis of Security Focused Regulations

Author

Listed:
  • Farrow Scott

    (University of Maryland, Baltimore County)

  • Shapiro Stuart

    (Rutgers University)

Abstract

Security focused regulations have been largely exempt from the benefit-cost type of analysis required for major Federal regulations and done routinely in areas such as transportation, environment and safety. Among the reasons offered for exemption are the analytical difficulties of security issues involving complex or poorly understood probabilities and consequences. This paper investigates the magnitude of security focused regulations, a framework for developing an expected cost analysis of regulations, and the current "break-even" analysis used by the Department of Homeland Security. Key assumptions implicit in the current analysis are identified and suggestions are made for the difficult evolution of security regulations toward a more explicit benefit-cost analysis.

Suggested Citation

  • Farrow Scott & Shapiro Stuart, 2009. "The Benefit-Cost Analysis of Security Focused Regulations," Journal of Homeland Security and Emergency Management, De Gruyter, vol. 6(1), pages 1-22, April.
    • Handle: RePEc:bpj:johsem:v:6:y:2009:i:1:p:22:n:11
    DOI: 10.2202/1547-7355.1482
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    References listed on IDEAS

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    1. Scott Farrow, 2007. "The Economics Of Homeland Security Expenditures: Foundational Expected Cost‐Effectiveness Approaches," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 14-26, January.
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    6. Viscusi, W Kip & Zeckhauser, Richard J, 2003. "Sacrificing Civil Liberties to Reduce Terrorism Risks," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 99-120, March-May.
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    Cited by:

    1. Anthony M. Barrett, 2010. "Cost Effectiveness of On-Site Chlorine Generation for Chlorine Truck Attack Prevention," Decision Analysis, INFORMS, vol. 7(4), pages 366-377, December.
    2. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.
    3. Mark G. Stewart & John Mueller, 2013. "Terrorism Risks and Cost‐Benefit Analysis of Aviation Security," Risk Analysis, John Wiley & Sons, vol. 33(5), pages 893-908, May.

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