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Terrorism: Theory and applications

In: Handbook of Defense Economics

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Author Info
Enders, Walter
Sandler, Todd

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Abstract

This chapter reviews game-theoretic and choice-theoretic depictions of terrorist behavior. A simple game-theoretic framework is presented to ascertain under what circumstances a government would want to precommit itself to a no-negotiation strategy. In another game model, we analyze whether two governments (nations) that are targeted by the same terrorist group would overdeter or underdeter terrorist attacks. Moreover, we demonstrate that piecemeal policy, which allows the governments to share intelligence but not deterrence decisions, can be worse than no coordination. Choice-theoretic models identify substitution and complementarity possibilities among diverse modes of terrorist attacks as terrorists respond optimally to government actions. A host of time-series techniques are used to study the effectiveness of alternative antiterrorism policies. Vector-autoregression intervention procedures are particularly suited. Time-series analyses are also used to identify cycles, trends, and irregular components for forecasting purposes.

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Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
This chapter was published in: Keith Hartley & Todd Sandler (ed.) Handbook of Defense Economics, , chapter 09, pages 213-249, 1995.

This item is provided by Elsevier in its series Handbook of Defense Economics with number 1-09.

Handle: RePEc:eee:hdechp:1-09

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Related research
This chapter was published in the following book, which is listed on IDEAS:
Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1, September. [Downloadable!] (restricted)
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  1. Bruno Frey & Simon Luechinger & Alois Stutzer, 2004. "Valuing Public Goods: The Life Satisfation Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Todd Sandler, 2005. "Collective versus unilateral responses to terrorism," Public Choice, Springer, vol. 124(1), pages 75-93, July. [Downloadable!] (restricted)
  3. Carlos Pestana Barros, 2003. "An intervention analysis of terrorism: the spanish eta case," Defence and Peace Economics, Taylor and Francis Journals, vol. 14(6), pages 401-412, December. [Downloadable!] (restricted)
  4. Manuel Trajtenberg, 2006. "Defense R&D In The Anti-Terrorist Era," Defence and Peace Economics, Taylor and Francis Journals, vol. 17(3), pages 177-199, June. [Downloadable!] (restricted)
    Other versions:
  5. Bruno S. Frey & Simon Luechinger, . "Terrorism: Deterrence May Backfire," IEW - Working Papers iewwp136, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  6. Charles Anderton & John Carter, 2004. "Applying Intermediate Microeconomics to Terrorism," Working Papers 0412, College of the Holy Cross, Department of Economics. [Downloadable!]
  7. Carlos P. Barros & Guglielmo Maria Caporale & Luis A. Gil-Alana, 2006. "Eta Terrorism:Police Action, Political Measures And The Influence Of Violence On Economic Activity In The Basque Country," Economics and Finance Discussion Papers 06-03, Economics and Finance Section, School of Social Sciences, Brunel University. [Downloadable!]
  8. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers iewwp171, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  9. William Shughart, 2006. "An analytical history of terrorism, 1945–2000," Public Choice, Springer, vol. 128(1), pages 7-39, July. [Downloadable!] (restricted)
  10. Manuel Trajtenberg, 2003. "Defense R&D Policy in the Anti-terrorist Era," NBER Working Papers 9725, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Charles Anderton & John Carter, 2005. "On Rational Choice Theory And The Study Of Terrorism," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(4), pages 275-282, August. [Downloadable!] (restricted)
  12. William Shughart & Robert Tollison, 2005. "Public choice in the new century," Public Choice, Springer, vol. 124(1), pages 1-18, July. [Downloadable!] (restricted)
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