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 … the tendency for individuals to stay home after a terror attack further increases the costs of crime. …