Here's how much terrorist attacks cut into air travel

Terrorist attacks have become both more frequent and more deadly. While their social cost is enormous and evident, economists are tallying up something more obscure: how much they reduce output. An analysis of the terror-spurred drag on air travel shows attacks depress long-distance air travel between affected countries, researchers find, assessing a sample of 57 source countries and 25 destination countries for the period of 2000 to 2014. The number of terrorist attacks has increased by a factor of 5 between 2003 and 2014 and the "number of people killed in terrorism related incidents also has been increasing exponentially," based on the dataset. Against that backdrop, an attack on average reduces bilateral air transport by 0.76%, controlling for distance. <br/>