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Global terrorism: deterrence versus pre-emption

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  • Todd Sandler
  • Kevin Siqueira

Abstract

This paper analyses two anti-terrorism policies when a targeted nation's people and property are in jeopardy at home and abroad. A country's deterrence decision involves both external benefits and costs as the terrorist threat is deflected, while its preemption decision typically gives external benefits when the threat is reduced for all potential targets. With damages limited to home interests, a country will overdeter, while, for globalized terror, a country will underdeter. Pre-emption is usually undersupplied. Leader-follower behaviour is apt to lessen inefficiency for deterrence, but worsen inefficiency for pre-emption, compared with simultaneous-choice equilibrium allocations. Targeted nations can never achieve the proper counterterrorism policy through leadership.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 39 (2006)
Issue (Month): 4 (November)
Pages: 1370-1387

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Handle: RePEc:cje:issued:v:39:y:2006:i:4:p:1370-1387

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Cited by:
  1. Charles Anderton & John Carter, 2004. "Applying Intermediate Microeconomics to Terrorism," Working Papers, College of the Holy Cross, Department of Economics 0412, College of the Holy Cross, Department of Economics.
  2. Satya P. Das & Prabal Roy Chowdhury, 2014. "Deterrence, Preemption, And Panic: A Common-Enemy Problem Of Terrorism," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 219-238, 01.
  3. Wenzel, Lars & Wolf, André, 2013. "Protection against major catastrophes: An economic perspective," HWWI Research Papers 137, Hamburg Institute of International Economics (HWWI).
  4. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.
  5. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2011. "Foreign aid as counterterrorism policy," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 423-447, July.
  6. Hattori, Keisuke, 2011. "A Note on Within-group Cooperation and Between-group Interaction in the Private Provision of Public Goods," MPRA Paper 32045, University Library of Munich, Germany.
  7. Subhayu Bandyopadhyay & Todd Sandler, 2011. "Immigration policy and counterterrorism," Working Papers, Federal Reserve Bank of St. Louis 2011-012, Federal Reserve Bank of St. Louis.
  8. Khusrav Gaibulloev & Todd Sandler, 2008. "The Impact of Terrorism and Conflicts on Growth in Asia, 1970–2004," Working Papers id:1789, eSocialSciences.
  9. Tiberiu Dragu & Mattias Polborn, 2009. "Terrorism Prevention and Electoral Accountability," CESifo Working Paper Series 2864, CESifo Group Munich.
  10. Joseph Young & Michael Findley, 2011. "Can peace be purchased? A sectoral-level analysis of aid’s influence on transnational terrorism," Public Choice, Springer, Springer, vol. 149(3), pages 365-381, December.
  11. Das, Satya P., 2008. "Some mechanisms of terror cycles," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 67(3-4), pages 644-656, September.
  12. Thomas Jensen, 2012. "National Responses to Transnational Terrorism: Intelligence and Counterterrorism Provision," Discussion Papers 12-22, University of Copenhagen. Department of Economics.

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