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The Economics Of Counterterrorism: A Survey

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  • Friedrich Schneider
  • Tilman Brück
  • Daniel Meierrieks

Abstract

We provide a review of theoretical and empirical contributions on the economic analysis of terrorism and counterterrorism. We argue that simple rational-choice models of terrorist behavior – in the form of cost-benefit models – already provide a well-founded theoretical framework for the study of terrorism and counterterrorism. We also hint at their limitations which relate to the failure of accounting for the dynamics between terrorism and counterterrorism that may produce unintended second-order effects as well as for the costs associated with counterterrorism and its international dimension. We reevaluate previously proposed counterterrorism strategies accordingly. Finally, in the light of our findings, we discuss interesting areas of future research.

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  • Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2015. "The Economics Of Counterterrorism: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 131-157, February.
  • Handle: RePEc:bla:jecsur:v:29:y:2015:i:1:p:131-157
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    File URL: http://hdl.handle.net/10.1111/joes.12060
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    Cited by:

    1. Mubashra, Sana & Shafi, Mariuam i, 2018. "The Impact of Counter-terrorism Effectiveness on Economic Growth of Pakistan: An Econometric Analysis," MPRA Paper 84847, University Library of Munich, Germany.
    2. De Sousa, José & Mirza, Daniel & Verdier, Thierry, 2018. "Terror networks and trade: Does the neighbor hurt?," European Economic Review, Elsevier, vol. 107(C), pages 27-56.
    3. Krieger, Tim & Meierrieks, Daniel, 2019. "The economic consequences of terrorism for the European Union," Discussion Paper Series 2019-02, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    4. Yang Jiao & Zijun Luo, 2019. "A model of terrorism and counterterrorism with location choices," Public Choice, Springer, vol. 179(3), pages 301-313, June.
    5. Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2020. "Paying Them to Hate US: The Effect of U.S. Military Aid on Anti-American Terrorism, 1968-2014," ECONtribute Discussion Papers Series 013, University of Bonn and University of Cologne, Germany.
    6. Mario Gilli & Paolo Tedeschi, 2020. "European Union and Transnational Terrorism. A Normative Analysis of Strategic Spillovers," Working Papers 437, University of Milano-Bicocca, Department of Economics, revised Mar 2020.
    7. Giovanni Immordino & Gülen Karakoç & Salvatore Piccolo, 2018. "Terrorism, Counterterrorism and Optimal Striking Rules," Revue économique, Presses de Sciences-Po, vol. 69(6), pages 961-984.
    8. Tausch, Arno, 2016. "Occidentalism, terrorism, and the Shari’a state: new multivariate perspectives on Islamism based on international survey data," MPRA Paper 69498, University Library of Munich, Germany.
    9. Nicola, Brugali & Paolo, Buonanno & Mario, Gilli, 2018. "Political Regimes and the Determinants of Terrorism and Counter-terrorism," Working Papers 384, University of Milano-Bicocca, Department of Economics, revised 13 Jul 2018.
    10. Bayón, L. & Fortuny Ayuso, P. & García-Nieto, P.J. & Grau, J.M. & Ruiz, M.M., 2019. "Optimal control of counter-terrorism tactics," Applied Mathematics and Computation, Elsevier, vol. 347(C), pages 477-491.
    11. Chandra, Yanto, 2017. "Social entrepreneurship as emancipatory work," Journal of Business Venturing, Elsevier, vol. 32(6), pages 657-673.
    12. Meierrieks, Daniel & Krieger, Tim, 2015. "Modernization and Islamist Conflict," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113142, Verein für Socialpolitik / German Economic Association.

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