National security is a basic responsibility of national governments, but it is also intangible.
What can economic analysis contribute? Benefit-cost analysis has rarely been applied
because of the ambiguous and commons nature of the benefits. Our group at the University
of Southern California’s Center for Risk and Economic Analysis of Terrorism (CREATE) has
worked to elaborate and apply economic impact analysis to describe the expected losses
from various hypothetical terrorist attacks. Our innovation has been to add a spatial
dimension to operational inter-industry models.
Economic Impact Analysis of Terrorism Events
Recent Methodological Advances and Findings
Working paper
OECD/ITF Joint Transport Research Centre Discussion Papers

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