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Calculating Tragedy: Assessing The Costs Of Terrorism

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Author Info
Bruno S. Frey
Simon Luechinger
Alois Stutzer

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Abstract

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. Copyright 2007 The Author Journal compilation © 2007 Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 21 (2007)
Issue (Month): 1 (02)
Pages: 1-24
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Handle: RePEc:bla:jecsur:v:21:y:2007:i:1:p:1-24

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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. Christian Ewerhart & Nuno Cassola & Steen Ejerskov & Natacha Valla, . "Liquidity, Information, and the Overnight Rate," IEW - Working Papers iewwp186, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  2. Stephan Meier & Bruno Frey, 2004. "Do business students make good citizens?," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 11(2), pages 141-163, July. [Downloadable!] (restricted)
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  3. Bruno S. Frey & Alois Stutzer, . "Testing Theories of Happiness," IEW - Working Papers iewwp147, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  4. Bruno S. Frey & Simon Luechinger & Alois Stutzer, . "Valuing Public Goods: The Life Satisfaction Approach," IEW - Working Papers iewwp184, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  5. Hens,Thorsten & Herings,P. Jean-Jacques & Predtetchinskii,Arkadi, 2003. "Limits to Arbitrage when Market Participation Is Restricted," Research Memoranda 061, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
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  6. Frey, Bruno S. & Meier, Stephan, 2006. "The Economics of Museums," Handbook of the Economics of Art and Culture, Elsevier. [Downloadable!] (restricted)
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  7. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers iewwp171, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  8. Fehr, Ernst & Fischbacher, Urs & von Rosenbladt, Bernhard & Schupp, Jürgen & Wagner, Gert G., 2003. "A Nation-Wide Laboratory: Examining Trust and Trustworthiness by Integrating Behavioral Experiments into Representative Surveys," IZA Discussion Papers 715, Institute for the Study of Labor (IZA). [Downloadable!]
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  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!]
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  10. Aleksander Berentsen & Gabriele Camera & Christopher Waller, . "The Distribution of Money and Prices in an Equilibrium with Lotteries," IEW - Working Papers iewwp174, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  11. Aleksander Berentsen & Esther Bruegger & Simon Loertscher, . "Heterogeneity, Local Information, and Global Interaction," IEW - Working Papers iewwp182, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  12. Christian Ewerhart & Nuno Cassola & Steen Ejerskov & Natacha Valla, . "Optimal Allotment Policy in Central Bank Open Market Operations," IEW - Working Papers iewwp201, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  13. Bruno S. Frey & Margit Osterloh, 2004. "Yes, Managers Should Be Paid Like Bureaucrats," CREMA Working Paper Series 2005-03, Center for Research in Economics, Management and the Arts (CREMA). [Downloadable!]
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  14. Foellmi, Reto & Zweimuller, Josef, 2004. "Inequality, market power, and product diversity," Economics Letters, Elsevier, vol. 82(1), pages 139-145, January. [Downloadable!] (restricted)
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  15. Bruno Frey & Alois Stutzer, 2005. "Happiness Research: State and Prospects," Review of Social Economy, Taylor and Francis Journals, vol. 63(2), pages 207-228, June. [Downloadable!] (restricted)
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  16. Stutzer, Alois & Bruno S. Frey, 2004. "Stress That Doesn't Pay: The Commuting Paradox," IZA Discussion Papers 1278, Institute for the Study of Labor (IZA). [Downloadable!]
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  17. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Calculating Tragedy: Assessing the Costs of Terrorism," CREMA Working Paper Series 2004-23, Center for Research in Economics, Management and the Arts (CREMA). [Downloadable!]
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  18. Igor Evstigneev & Thorsten Hens & Klaus Reiner Schenk-Hoppé, 2003. "Evolutionary Stable Stock Markets," Discussion Papers 03-39, University of Copenhagen. Department of Economics. [Downloadable!]
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  19. Alois Stutzer & Bruno S. Frey, . "Does Marriage Make People Happy, Or Do Happy People Get Married?," IEW - Working Papers iewwp143, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  20. Lorenz Goette & David Huffman & Ernst Fehr, 2004. "Loss Aversion and Labor Supply," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 216-228, 04/05. [Downloadable!] (restricted)
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  21. Foellmi, Reto & Oechslin, Manuel, 2007. "Who gains from non-collusive corruption?," Journal of Development Economics, Elsevier, vol. 82(1), pages 95-119, January. [Downloadable!] (restricted)
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