Frey, B. S., Luechinger, S., &Stutzer, A. (2009). The life satisfaction approach to valuing public goods: The case of terrorism. Public Choice, 138(3-4), 317-345.
Terrorism has large social costs that are difficult to quantify for the well-known problems of eliciting people’s preferences for public goods. We use the LSA to assess these costs in utility and monetary terms. Based on combined cross-section time-series data, we estimate the costs of terrorism for France and the British Isles. We find large negative effects of terrorism on life satisfaction that translate into ...