On the Determinants of Terrorism Risk Concern in Europe
AbstractWe investigate whether differences in terrorism risk are mirrored on terrorism risk concern across European countries for the period 2003-2007. We find that the average propensity for terrorism risk concern is indeed affected by actual risk levels. Furthermore, country and individual heterogeneity contribute substantially to the variation of observed risk concern. According to our findings, males, singles and individuals with white collar jobs are less likely to mention terrorism as one of the most pressing issues their country faces. In contrast, political positioning towards the right end of the spectrum and living in rural areas make it more likely to be concerned about terrorism. As far as competing risks are concerned, we find that the likelihood terrorism is mentioned increases when competing risks' drivers also increase such as taxation, inflation, unemployment and poverty risk at work. In contrast, terrorism is less likely to be mentioned when the determinants of crime, immigration rates, housing costs and pensions are higher. Finally, based on the Bayesian framework we also examine the formation of terrorism risk perceptions, and decompose the observed country level time series of terrorism activity into a long and a short run component. We conclude that the observed risk concern variation is mostly explained by the trend part of terrorism activity countries face, although cyclical variations are also important.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 36.
Length: 29 p.
Date of creation: 2010
Date of revision:
probit; survey data; terrorism risk concern; time series decomposition;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
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.:
- V. Kerry Smith & Donald H. Taylor & Frank A. Sloan & F. Reed Johnson & William H. Desvousges, 2001.
"Do Smokers Respond To Health Shocks?,"
The Review of Economics and Statistics, MIT Press,
MIT Press, vol. 83(4), pages 675-687, November.
- Smith, V. Kerry & Taylor, Donald H., Jr. & Sloan, Frank A. & Johnson, F. Reed & Desvousges, William H., 2000. "Do Smokers Respond to Health Shocks?," Working Papers, Duke University, Department of Economics 00-08, Duke University, Department of Economics.
- Harvey, A C, 1985. "Trends and Cycles in Macroeconomic Time Series," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 3(3), pages 216-27, June.
- Sunstein, Cass R, 2003. " Terrorism and Probability Neglect," Journal of Risk and Uncertainty, Springer, Springer, vol. 26(2-3), pages 121-36, March-May.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004.
"Calculating Tragedy: Assessing the Costs of Terrorism,"
CREMA Working Paper Series, Center for Research in Economics, Management and the Arts (CREMA)
2004-23, Center for Research in Economics, Management and the Arts (CREMA).
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 21(1), pages 1-24, 02.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, . "Calculating Tragedy: Assessing the Costs of Terrorism," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 205, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Calculating Tragedy: Assessing the Costs of Terrorism," CESifo Working Paper Series, CESifo Group Munich 1341, CESifo Group Munich.
- Smith, V. Kerry & Michaels, R. Gregory, 1987. "How did households interpret chernobyl? : A bayesian analysis of risk perceptions," Economics Letters, Elsevier, Elsevier, vol. 23(4), pages 359-364.
- Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 36(1), pages 47-74, March.
- V. Kerry Smith & William H. Desvousges & F. Reed Johnson & Ann Fisher, 1990. "Can public information programs affect risk perceptions?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 9(1), pages 41-59.
- Smith, V Kerry & Johnson, F Reed, 1988. "How Do Risk Perceptions Respond to Information? The Case of Radon," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 70(1), pages 1-8, February.
- W. Kip Viscusi & William N. Evans, 1998. "Estimation Of Revealed Probabilities And Utility Functions For Product Safety Decisions," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 80(1), pages 28-33, February.
- Viscusi, W Kip & O'Connor, Charles J, 1984. "Adaptive Responses to Chemical Labeling: Are Workers Bayesian Decision Makers?," American Economic Review, American Economic Association, American Economic Association, vol. 74(5), pages 942-56, December.
- Gary S. Becker & Yona Rubinstein, 2011. "Fear and the Response to Terrorism: An Economic Analysis," CEP Discussion Papers, Centre for Economic Performance, LSE dp1079, Centre for Economic Performance, LSE.
- Evans, William N & Viscusi, W Kip, 1991. "Estimation of State-Dependent Utility Functions Using Survey Data," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 73(1), pages 94-104, February.
- Loewenstein, George & Mather, Jane, 1990. " Dynamic Processes in Risk Perception," Journal of Risk and Uncertainty, Springer, Springer, vol. 3(2), pages 155-75, June.
- Clark, Peter K, 1987. "The Cyclical Component of U.S. Economic Activity," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 102(4), pages 797-814, November.
- Viscusi, W Kip, 1989. " Prospective Reference Theory: Toward an Explanation of the Paradoxes," Journal of Risk and Uncertainty, Springer, Springer, vol. 2(3), pages 235-63, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.