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Appeasing nihilists? Some economic thoughts on reducing terrorist activity

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Author Info
Jan Schnellenbach ()

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Abstract

Recent contributions to the economics of terrorism have given contradicting recommendations for campaigning against terrorism, from the proposal to deprive terrorists of their resources to the proposal of raising the opportunity costs of terrorism by increasing the wealth of the affected regions. Within a simple framework which differentiates between the decision to become an active terrorist and the decision to support terrorists and which allows for reciprocal reactions to anti-terrorism policies, it is argued here that undifferentiated deterrence may indeed backfire, but so may an increase of the opportunity costs of terrorism. A very targeted anti-terrorism policy aimed only at active terrorists would then be the most reasonable remaining approach. Copyright Springer Science+Business Media, B.V. 2006

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File URL: http://hdl.handle.net/10.1007/s11127-006-9029-9
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 129 (2006)
Issue (Month): 3 (December)
Pages: 301-313
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Handle: RePEc:kap:pubcho:v:129:y:2006:i:3:p:301-313

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Web page: http://www.springerlink.com/link.asp?id=100332

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Related research
Keywords: Terrorism Deterrence Reciprocity Anti-terrorism policies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Steven Plaut, 2004. "Misplaced Applications of Economic Theory to the Middle East," Public Choice, Springer, vol. 118(1_2), pages 11-24, 01. [Downloadable!]
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  5. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall. [Downloadable!] (restricted)
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  7. Franck, Raphael & Hillman, Arye L. & Krausz, Miriam, 2004. "Public Safety and the Moral Dilemma in the Defense Against Terror," CEPR Discussion Papers 4736, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May. [Downloadable!] (restricted)
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  13. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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  14. Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May. [Downloadable!] (restricted)
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  1. Axel Dreher & Justina A. V. Fischer, 2008. "Decentralization as a disincentive for transnational terror? An empirical test," Working papers 08-185, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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