Applying Modern Portfolio Theory To The Analysis Of Terrorism. Computing The Set Of Attack Method Combinations From Which The Rational Terrorist Group Will Choose In Order To Maximise Injuries And Fatalities
AbstractIn this paper, terrorism is analysed using the tools of modern portfolio theory. This approach permits the analysis of the returns that a terrorist group can expect from their activities as well as the risk they face. The analysis sheds new light on the nature of the terrorist group's (attack method) choice set and the efficiency properties of that set. If terrorist groups are, on average, more risk averse, the economist can expect the terrorist group to exhibit a bias towards bombing and armed attack. In addition, even the riskiest (from the terrorist group's point of view) combinations of attack methods have maximum expected returns of less than 70 injuries and fatalities per attack per year.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Defence and Peace Economics.
Volume (Year): 20 (2009)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/GDPE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Peter Phillips, 2011. "Terrorists’ Equilibrium Choices When No Attack Method is Riskless," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(2), pages 129-141, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.