Gould, Eric D.; Stecklov, Guy - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2009
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 … "disrupting the police." Taken as a whole, the results are consistent with a stronger deterrence effect produced by an increased …