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| Author: | Gould, E.D. Stecklov, G. |
| Title: | Terror and the costs of crime |
| Journal: | Journal of Public Economics
2009 : DEC, VOL. 93:11-12, p. 1175-1188 |
| Index terms: | terrorism violence crime costs police force Israel |
| Language: | eng |
| Abstract: | It is argued herein that terrorism, beyond its immediate impact on innocent victims, also raises the costs of crime. Hence, it imposes a negative externality on potential criminals. Terrorism raises the costs of crime through two channels: 1. by increasing the presence and activity of the police force, and 2. causing more people to stay at home rather than going out for leisure activities. Using a panel of 120 fatal terror attacks and all reported crimes for 17 districts throughout Israel from 2000 to 2005, it is shown that terror attacks reduce property crimes e.g. burglary, auto-theft, and thefts-from-cars. Terror also reduces assaults and aggravated assaults occuring in private homes, but increases incidents of trespassing and "disrupting the police". As a whole, the results are consistent with a stronger deterrence effect produced by an increased police presence after a terror attack. |
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