Calculating Tragedy: Assessing the Costs of Terrorism

By Bruno S. Frey, Simon Luechinger, Alois Stutzer. Social Science Research Network, 2004

461 citations recorded by the source corpus.

The trends and consequences of terrorist activities are often captured by counting the number of incidents and casualties. More recently, the effects of terrorist acts on various aspects of the economy have been analyzed. These costs are surveyed and put in perspective. As economic consequences are only a part of the overall costs of terrorism, possible approaches for estimating the utility losses of the people affected are discussed. Results using the life satisfaction approach, in which individual utility is approximated by self-reported subjective well-being, suggest that people's utility losses may far exceed the purely economic consequences.

Subfields: General Health Professions, Social Psychology, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/718aac90959bfaba329455e89b957345f6ec03b6

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Citations in the corpus

Causal Linkages Between Domestic Terrorism and Economic Growth (2011, background): “In general, existing evidence suggests 3 Frey et al. (2007) and Enders and Sandler (2008) bring forward similar theoretical channels of influence of terrorism on the economy.”
A DYNAMICAL MODEL OF TERRORISM (2006, background): “The different circumstances in which nonviolent intervention and/or military/police intervention may be beneficial, and the specific conditions under which each mode of intervention, or a combination of both, may be useful, are obtained.”
The life satisfaction approach to valuing public goods: The case of terrorism (2009, background): “In the last few years, economic scholars have provided evidence for adverse effects of terrorism on various sectors of the economy and on overall economic activity (e.g., Abadie and Gardeazabal 2003; see Frey et al. 2007 for a review).”
Terrorism and international business: A research agenda (2010, background): “and Latin America (e.g., Enders & Sandler, 1996; Frey et al., 2007; Lutz & Lutz, 2006).”
Terrorism and Stock Market Sentiment (2010, unknown): “e.g., Johnston and Nedelescu, 2006; Frey, Luechinger, and Stutzer, 2007 ).1”
Dynamics of Output Growth, Consumption and Physical Capital in Two-Sector Models of Endogenous Growth (2009, unknown): “…concerns the way income is normally used in cost-benefit analysis – i.e., in the calculation of compensatory damages through the application of happiness equations (see, for example, Van Praag and Baarsma, 2005; Frey et al, 2007; Dolan and White, 2007; Oswald and Powdthavee, 2008; Sunstein, 2007).”
Yes, Managers Should Be Paid Like Bureaucrats (2005, unknown): “Managers have turned from so-called legends (Hegele & Kieser, 2001) to crooks (Osterloh & Frey, 2004).”
Assessing the Impacts of the Global Economic Crisis and Swine Flu on Inbound Tourism Demand in the United Kingdom (2012, background): “For example, Araña and León (2008) and Frey, Luechinger, and Stutzer (2007) examined the impact of terrorist attacks, and Berrittella et al. (2006) those of natural disasters, on tourism demand.”
Does Terror Threaten Human Rights? Evidence from Panel Data (2007, background): “For an extensive summary on the various effects of terrorism see Frey et al. (2007).”