Terror and the Costs of Crime
This paper argues that terrorism, beyond its immediate impact on innocent victims, also raises the costs of crime, and therefore, imposes a negative externality on potential criminals. Terrorism raises the costs of crime through two channels: (i) by increasing the presence and activity of the police force, and (ii) causing more people to stay at home rather than going out for leisure activities. Our analysis exploits a panel of 120 fatal terror attacks and all reported crimes for 17 districts throughout Israel between 2000 and 2005. After controlling for the fixed-effect of each district and for district-specific time trends, we show that terror attacks reduce property crimes such as burglary, auto-theft, and thefts-from-cars. Terror also reduces assaults and aggravated assaults which occur in private homes, but increases incidents of trespassing and "disrupting the police." Taken as a whole, the results are consistent with a stronger deterrence effect produced by an increased police presence after a terror attack. A higher level of policing is likely to catch more people trespassing, and at the same time, reduce the number of property crimes. The decline in crimes committed in private houses is likely an indication that the tendency for individuals to stay home after a terror attack further increases the costs of crime.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.diw.de/enEmail:
More information through EDIRC
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.:
- Jonathan Klick & Alexander Tabarrok, .
"Using Terror Alert Levels to Estimate the Effect of Police on Crime,"
American Law & Economics Association Annual Meetings
1042, American Law & Economics Association.
- Klick, Jonathan & Tabarrok, Alexander, 2005. "Using Terror Alert Levels to Estimate the Effect of Police on Crime," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 267-79, April.
- Mirko Draca & Stephen Machin & Robert Witt, 2011.
"Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks,"
American Economic Review,
American Economic Association, vol. 101(5), pages 2157-81, August.
- Mirko Draca & Stephen Machin & Robert Witt, 2008. "Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks," School of Economics Discussion Papers 0308, School of Economics, University of Surrey.
- Mirko Draca & Steve Machin & Robert Witt, 2008. "Panic on the streets of London: police, crime and the July 2005 terror attacks," LSE Research Online Documents on Economics 19632, London School of Economics and Political Science, LSE Library.
- Draca, Mirko & Machin, Stephen & Witt, Robert, 2008. "Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks," IZA Discussion Papers 3410, Institute for the Study of Labor (IZA).
- Mirko Draca & Stephen Machin & Robert Witt, 2008. "Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks," CEP Discussion Papers dp0852, Centre for Economic Performance, LSE.
- Edward L. Glaeser & Bruce Sacerdote, 1996.
"Why is There More Crime in Cities?,"
Harvard Institute of Economic Research Working Papers
1746, Harvard - Institute of Economic Research.
- Evans, William N. & Owens, Emily G., 2007. "COPS and crime," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 181-201, February.
- Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
- Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
- Raphael, Steven & WINTER-EBMER, RUDOLF, 1998.
"Identifying the Effect of Unemployment on Crime,"
University of California at San Diego, Economics Working Paper Series
qt5hb4h56g, Department of Economics, UC San Diego.
- Liu, Liqun & Rettenmaier, Andrew J., 2007. "Effects of mortality risk on risk-taking behavior," Economics Letters, Elsevier, vol. 94(1), pages 49-55, January.
- Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
- Eckstein, Zvi & Tsiddon, Daniel, 2004.
"Macroeconomic Consequences of Terror: Theory and the Case of Israel,"
CEPR Discussion Papers
4427, C.E.P.R. Discussion Papers.
- Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
- Gary S. Becker & Yona Rubinstein, 2011. "Fear and the Response to Terrorism: An Economic Analysis," CEP Discussion Papers dp1079, Centre for Economic Performance, LSE.
- Steven D. Levitt, 1995.
"Using Electoral Cycles in Police Hiring to Estimate the Effect of Policeon Crime,"
NBER Working Papers
4991, National Bureau of Economic Research, Inc.
- Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-90, June.
- Eldor, Rafi & Melnick, Rafi, 2004. "Financial markets and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 367-386, June.
- H. Naci Mocan & Hope Corman, 2000. "A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City," American Economic Review, American Economic Association, vol. 90(3), pages 584-604, June.
When requesting a correction, please mention this item's handle: RePEc:diw:diweos:diweos15. See general information about how to correct material in RePEc.
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.