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On Rational Choice Theory And The Study Of Terrorism

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Author Info

  • Charles Anderton
  • John Carter

Abstract

When rational choice theory is applied to the study of terrorism, it is important that attention be given to the derived principles of constrained utility maximization. Particularly useful is the Slutsky equation, which rigorously analyzes the quantity response in one activity to a price change in another. By directing attention to assumptions and/or information about compensated cross price elasticities, expenditure shares, and income elasticities, the Slutsky equation can provide critical guidance in both theoretical and empirical analysis.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/1024269052000344864
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 16 (2005)
Issue (Month): 4 ()
Pages: 275-282

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Handle: RePEc:taf:defpea:v:16:y:2005:i:4:p:275-282

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Related research

Keywords: Terrorism; Rational choice; Deterrence; Income and substitution effects; Slutsky equation; Composite good;

References

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  1. 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.
  2. Bruno S. Frey & Simon Luechinger, . "How to Fight Terrorism: Alternatives to Deterrence," IEW - Working Papers 137, Institute for Empirical Research in Economics - University of Zurich.
  3. Enders, Walter & Sandler, Todd, 1995. "Terrorism: Theory and applications," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 9, pages 213-249 Elsevier.
  4. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers 1823, Iowa State University, Department of Economics.
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Citations

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Cited by:
  1. Martin Gassebner & Richard Jong-A-Pin & Jochen O. Mierau, 2007. "Terrorism and Cabinet Duration: An Empirical Analysis," KOF Working papers 07-181, KOF Swiss Economic Institute, ETH Zurich.
  2. 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.
  3. Charles Anderton & John Carter, 2004. "Applying Intermediate Microeconomics to Terrorism," Working Papers 0412, College of the Holy Cross, Department of Economics.
  4. Siqueira, Kevin & Sandler, Todd, 2007. "Terrorist backlash, terrorism mitigation, and policy delegation," Journal of Public Economics, Elsevier, vol. 91(9), pages 1800-1815, September.

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