It sounds like Mr Stiglitz and Ms Bilmes included alot of implicit (questionable?) costs but without actually reading their book I can't really make a statement about that. War is quite a pricey business. And it is impossible (even for an economist) to put a price on a human life. There are reviews and exerpts of the book all over the net if you wish to do some reading.
Exerpt of the book (haven't read it yet but did look at the great cartoon)
Stiglitz's website which has many reviews and interviews regarding the book
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