A framework for analyzing the economic tradeoffs between urban commerce and security against terrorism.
This article presents a framework for economic consequence analysis of terrorism countermeasures. It specifies major categories of direct and indirect costs, benefits, spillover effects, and transfer payments that must be estimated in a comprehensive assessment. It develops a spreadsheet tool for data collection, storage, and refinement, as well as estimation of the various components of the necessary economic accounts. It also illustrates the usefulness of the framework in the first assessment of the tradeoffs between enhanced security and changes in commercial activity in an urban area, with explicit attention to the role of spillover effects. The article also contributes a practical user interface to the model for emergency managers.
National Center for Risk and Economic Analysis of Terrorism Events, University of Southern California, Los Angeles, CA, USA.
Adam
A
Rose
Misak
M
Avetisyan
Samrat
S
Chatterjee
D000393:Air Pollutants / Q000506:poisoning; D003132:Commerce; D003362:Cost-Benefit Analysis; D006801:Humans; D018803:Models, Economic; D015233:Models, Statistical; D018570:Risk Assessment; D012524:Sarin / Q000506:poisoning; D012637:Security Measures / Q000191:economics*; D013690:Television / Q000191:economics; D023481:Terrorism / Q000191:economics / Q000517:prevention & control*; D014481:United States; D014505:Urban Population
D000393:Air Pollutants; D012524:Sarin
Computable general equilibrium modeling; economic consequence analysis; security; spillover effects; terrorism risk