A Preliminary Benefit/Cost Framework for Counterterrorism Public Expenditures

Approved for public release; distribution unlimited R This publication was supported by RAND using its own funds. RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND ® is a registered trademark. RAND's publications do not necessarily reflect the opinions or policies of its research sponsors. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. A preliminary benefit/cost framework for counterterrorism public expenditures / Benjamin Zycher. p. cm. Includes bibliographical references. iii Preface This report examines a number of public finance issues related to large public expenditures for counterterrorism policies. Foremost in any discussion on the subject is derivation of rough estimates of the aggregate benefits and costs attendant upon such an effort. The analysis approach in this report should provide a framework for benefit/cost analysis of particular policies, and thus for construction of rough but reasonable ranking among the myriad potential actions decisionmakers might consider. The study should be of interest to analysts and policymakers involved in allocating resources in the wake of the September 11, 2001 attacks. Research and writing were completed in February 2003.