The Life Satisfaction Approach to Valuing Public Goods : The Case of Terrorism

  title={The Life Satisfaction Approach to Valuing Public Goods : The Case of Terrorism},
  author={Bruno S. Freya and Simon Luechingera and Alois Stutzerb},
  • Bruno S. Freya, Simon Luechingera, Alois Stutzerb
  • Published 2008
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 considerable compensating surpluses for a hypothetical reduction in terrorism, in… CONTINUE READING


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