The Economic Consequences of Terror: A Brief Survey
AbstractThis brief survey reviews the economic consequences of terrorism. It is argued that the indirect effects of terrorism are likely to outweigh the direct effects. The former include changes in risk, transaction costs, demand, public finances and growth. We also address the nature of anti-terrorist policy and of policies reducing the negative impact of terrorism. The former can change the incentives for terrorists to break with social conventions or maximize the costs of conducting terrorism. The latter is particularly important as badly designed policies could enhance the negative economic effects of terrorist actions.
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Bibliographic InfoPaper provided by Households in Conflict Network in its series HiCN Working Papers with number 03.
Length: 13 pages
Date of creation: Apr 2004
Date of revision:
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Web page: http://www.hicn.org
terror; terrorism; security policy;
Find related papers by JEL classification:
- A31 - General Economics and Teaching - - Multisubject Collective Works - - - Multisubject Collected Writings of Individuals
- N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-07 (All new papers)
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