Gould, Eric D.; Stecklov, Guy - Institute for the Study of Labor (IZA) - 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 …) by increasing the presence and activity of the police force, and (ii) causing more people to stay at home rather than …